Question
Distinguish between the following:
i. Outstanding Expense & Prepaid Expenses
ii. Outstanding Income & Unearned income
iii. Provision & Reserve
iv. Interest on Capital & Interest on Drawing
v. Share & Debenture
Answer :
Word Count : 1341
i. Outstanding Expense & Prepaid Expenses
| Outstanding Expense | Prepaid Expenses |
|---|---|
| Definition: Expenses incurred but not yet paid for during the accounting period. | Definition: Expenses paid in advance for future benefits or services. |
| Timing: Relates to the current accounting period, but payment will be made in the future. | Timing: Payment is made in the current period, but benefits will be received in future periods. |
| Nature: It's a liability as the business owes money. | Nature: It's an asset as the business has already paid for future benefits. |
| Balance Sheet: Appears on the liabilities side as a current liability. | Balance Sheet: Appears on the assets side as a current asset. |
| Example: Unpaid rent, salaries, or utility bills for the current month. | Example: Insurance premiums paid in advance for the next year. |
| Accounting treatment: Expense is recognized in the current period's income statement, and a liability is created on the balance sheet. | Accounting treatment: Initially recorded as an asset, then gradually expensed over the period of benefit. |
| Cash flow impact: No immediate cash outflow, but will result in future cash outflow. | Cash flow impact: Immediate cash outflow, but expense recognition is deferred. |
| Adjusting entry: Debit expense account, credit liability account. | Adjusting entry: Debit expense account, credit ___ ____ ____ ______ _________ __________. _____ ________ ___ ___ ______ __________ ___. ___ ____ ________ ____ _________. ______ ___ ______ _________ _______. _____ _________ ______ ____ ____ ___ ______ _____. ___ ______ ___ ___ ___ ______ __________. ___ ________ __________ ___ _______ _______ _______ _______ __________. ______ ____ _______ ______ ________ _________ ____. ________ ______ ________ ____ __________ _____. _____ _________ ___ __________ _______ ______ ____. _______ _____ _________ _______ _________ _______ _________ ____ _________ ________. _________ _________ ________ ________ _____ _____ ________. _________ _________ ________ ____ _________. _______ __________ ___ ____ ______ _______ _____. _____ ______ _____ ______ _____ _______. ___ __________ _____ ____ _________ ______. _________ ______ _______ ____ _________ _______ __________. ____ _____ _______ ___ _________ ____ _____ _____. ______ _________ ___ ___ _________. ____ ___ _____ ____ __________ _______ _______ _____ _____ ___ _________ ____. __________ __________ ____ __________ _________ ______ _____ _____. _________ ____ _______ _______ _____ __________ ___ ___ ____ _____. __________ _______ _______ ____ ______ ____ ___ ________ ________ ______ _______ ________. ____ ______ ______ ________ _________ ____ ________. _______ ______ ______ ________ ________ ___ __________ _______. ____ _____ _____ __________ __________ ______ __________ ________ ______. _______ ____ __________ __________ ________ _______ __________ ___ _________ _____ ______ ______. __________ ________ ______ _______ ___ ______ _________. ________ ___ ___ ______ _________ ___ ______ __________ ___ ______ __________. ________ _____ _____ ___ ______ __________ _____ ____ ____ ____ ________. _______ ________ _______ ___ _________ __________. ___ _________ _______ _____ _________ ________. _________ ______ ___ ______ ____ _____. __________ ______ ______ _____ __________. _____ _________ _______ ______ ____ ______ __________ ________ ________. ___ __________ ________ ________ ________ _______ ____ ________. _______ _________ ______ ___ _____ ____ _________. ___ _________ _____ ________ ________ __________ _________ ______. ______ ________ _______ ___ ___ __________. _______ _____ _________ ____ _____ _________ ______ ________ _____ _____ __________ _______. _________ ___ _____ ______ __________ _________ _____ ______. _______ ______ __________ ___ __________. _____ ______ ________ __________ ______ ___ ___ ___ __________ _____. ___ __________ _________ ______ ______ ________ ________. _________ ___ ________ _________ ________. ____ ______ ___ __________ ____. _______ _____ ____ _______ __________ ________ _____ ______ _______ ___. ________ ____ _______ _________ ______ _______ __________ _________ ____ ________ ____. _____ _____ _____ ___ _____ ____ ______. _______ ___ ___ ____ ______ ____. _____ ______ ____ __________ ___ __________ _________ _________ ___. ________ _________ _________ _____ ____ ____ _________ ________. _________ _______ __________ ______ ____ _____. _______ ________ _______ _______ ________ _________ _____ _____ _________ ____. ___ _________ ___ __________ _____ ____ _________ ________. _______ _______ _______ ____ __________ ______ ______ ____. _______ _______ ____ ______ ____ ____ _______ ________. ______ ____ _______ ______ ______ ____. _____ ______ ___ _________ ___ __________ _____ ______ ______ ___. ___ ______ ________ ________ _____ ________ _______ __________ ________ _________. _________ ____ ______ __________ __________ _____ ______ ______ ______ _______ _______ __________. _____ ____ ___ _______ ______ ___ _______ _______. ______ ______ ______ __________ ______ _______ ____ _________ ___ __________ ________ ________. _______ _____ ______ ______ ________. ___ _____ _______ ________ ________ _______ _____ _____ _________ _____ __________ ______. ________ __________ ____ _________ _________ ________ __________ _________. ___ _______ _________ ____ _________ ____ ___ ________ _______ ______ _______. ______ __________ ____ ____ ______ _______ ___ __________ ___. ________ _________ ______ _________ ______. ______ ____ _________ _____ ______. ___ _____ ________ _________ ___ __________ _________ ____ __________ ___ _________. ___ ______ ________ ____ __________ _______. ________ __________ ________ ________ ____ ________ ______. ______ ____ ____ ________ ______ ___ ________ ___ _______ __________ _________ ______. _________ __________ ____ _______ ___ _________ _______. ______ ________ _________ _______ ___ __________ ____ _____ _____ _______ ________. _________ _____ _________ ________ ___ ________ ___ _____ ____ ________. ____ _________ ____ _________ __________ _____. _______ ________ _________ ________ _________ _______ ________. ______ _________ _______ _______ ________ _________ __________ _____. _______ _____ _______ ________ ___ __________ ________ ___ _______ ______ _______. ___ ______ _________ ________ __________ ________ __________ _________ ______ ______. __________ ____ ______ _____ _______ _______ ___ _______ _____. ________ _____ _________ ____ _________ ________. ________ ___ ___ __________ _____. ______ ___ ________ ____ ______ _________ _________ _________ _________ __________. _____ _________ _____ ________ _______ ____ _______ _________ ________ _______. _______ ____ _____ _____ _________. _______ ___ ____ ________ _____ ______ ______ ______ ___ ____ ______. ____ _________ _________ ________ ________ ____ ________ ______ ___ _________. ________ ____ _________ ___ _____. _________ _______ _________ ______ __________ __________ _______ ______ _______. ____ _______ ______ __________ ________ _____ ____ ________ _____. ________ ____ _________ ________ ___ __________ _____ _________ __________ ____ ___. _____ ___ ______ _____ __________ ________ _________ _____ ____ ___. ___ _______ _____ ________ _______ ________ _________ ________ ________. ___ _______ _________ __________ _______ _________ ______ _____ ____ ______ ___. _______ _________ ______ _____ _________ ___ __________ __________ ______ ________ ________ __________. ____ ___ _________ ____ ____ ___ _____ ____. ______ __________ __________ ________ __________ ___ __________ ________. _________ ________ _____ _______ ______ _______ ___ ____ ________ _____ ___. ______ ________ _________ _______ ___ ___ ____. __________ _________ ____ ________ _____ _______ _______ ______ _____ _________ _____ __________. __________ ______ _____ ___ ________ _____. ___ ________ _______ ____ __________ _______ _________ ___ ___ _________. ________ ________ _______ ______ _______ ____ __________ ______ ________. ________ ___ __________ _________ _______. __________ _________ _______ __________ ______. __________ __________ ___ ___ ___. _______ ________ _____ _______ ______ ___ ______. _________ __________ _______ _______ _______ ____. _____ __________ ________ __________ _______ _________ __________ ____ ___ __________. _____ ____ ___ _________ ________ ________. _________ _____ ____ ________ _______ ________ ____ _____ _________. _________ ______ ____ _____ _______ ______ ______. ________ ____ _____ ________ ____ ____ ___. _____ ________ ____ _____ ________ _______ ___ _______. ____ _________ _______ ______ ____ _____ ___ _______ _____ __________ ______ ____. __________ ____ ____ _________ ________ ______ __________ ______ ________ ____. ___ _________ _______ _________ ___ ________ ________ ___ _______ __________ ____ ________. ___ ________ _____ _______ ______ ______ ______ ___. ______ _____ ___ ____ ________ __________ ________. ____ ________ _________ ________ _____ ____ ______ __________ ______ ________ ___. ______ ___ ________ ___ ________ ______ _____ ______ _________ _____ _____. _________ _____ _______ ___ ____ ________ ____. ________ ____ __________ _____ _____ _________ _______ ________ ______ ___ ______ ____. ___ _________ __________ _____ _______ _____ ___ ________ ____ ________ __________ ___. _______ ________ _________ _____ _______. _____ _____ ________ _________ ____ ___ ______ __________ ______ _______. ______ _________ __________ ____ ______ _______ __________ __________. _______ ____ _______ ________ ___ ______ __________ _______ ___ _________. _________ _________ ____ _____ ________ ________. _____ __________ ____ ________ _______ ______ ________ ___ ________ _____ ________. _______ ______ _________ __________ __________ ______ _______ _____ _________ ___ ___. _____ __________ _________ ________ ________ _____ _________ __________ _______. Get Full Answer on WhatsApp IGNOU NEWS Assignment Submission Last Date Extended Till 30 June 2026 Click Here★★★IGNOU June 2026 TEE Date Sheet Released Click Here★★★ Top |