Question

Prepaid expenses appear in a company’s balance sheet under the sub-head ______.

Options

• Other Current Assets

• Short-term Loans & Advances

• Intangible Assets

• Other Non-Current Assets

Answer 1

Prepaid expenses appear in a company’s balance sheet under the sub-head other current assets.

Explanation:

Prepaid Expenses are payments made in advance for services or benefits that will be received within the next 12 months (like insurance, rent, etc.). Since these are expected to provide benefit in the short term, they are classified as:

Current Assets → Other Current Assets in the Balance Sheet.