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  • Nota de Estudos
  • Rever Tópicos
    BabaJide Martins F.
    TR
    BabaJide Martins F.

    Noted.

    Morne V.
    ZA
    Morne V.

    Prepaid income is revenue received in advance but which is not yet earned. Income must be recorded in the accounting period in which it is earned.

    Sunday O.
    NG
    Sunday O.

    giving proper report on accounting

    Odongo M.
    UG
    Odongo M.

    Accounting -> Prepaid revenue Prepaid revenue In this example, commission of $4000 has been received with $500 prepaid. The prepaid revenue is a current liability. Date Accounts Debit Credit Jan-Mar Bank 4 000 Prepaid commission revenue 4 000 Commission received 31 Mar Prepaid commission revenue 3 500 Commission revenue 3 500 Adjusting entry for commission revenue received in advance 31 Mar Commission revenue 3 500 Profit and loss a/c 3 500 Commission revenue posted to profit and loss a/c In the Ledger Prepaid commission revenue 31 Mar Commission revenue 3 500 Jan.-Mar. Bank 4 000 Balance 500 Balance 4 000 1 Apr. Balance 4 000 Commission revenue 31 May Profit and Loss summary a/c 3 500 31 Mar. Prepaid commission revenue 3 500 Profit and Loss summary account 31 Mar. Commission revenue 3 500

    Manish K.
    NP
    Manish K.

    The income has been received before providing goods and services is prepaid revenue. it is current liability.

    Penelope M.
    US
    Penelope M.

    The prepaid revenue is a current liability., true because you paid for the work in advance and not guaranteed that it will be completed.

    Adil N.
    MA
    Adil N.

    What does Prepaid revenue do in the banking world?

    Gloria N.
    AE
    Gloria N.

    The prepaid revenue is a current liability.

    Baseli Gloria S.
    BW
    Baseli Gloria S.

    Prepaid income is revenue received in advance but which is not yet earned. Income must be recorded in the accounting period in which it is earned.

    Owusu E.
    GH
    Owusu E.

    prepaid revenueis an income or gain that has been recieved in advance therefore becoming current laibility to business

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