What are Prepaid Expenses || Business Debunked
Channel: Business Debunked
Date: 2020-09-16

As it turns out, prepaid expenses aren't really expenses at all; they're assets. When the company spends cash in advance to pay for something they will receive in the future, they are really trading one kind of asset  --  cash -- for another kind of asset-- the right to this future good or service. In this video, we look at three examples of prepaid expenses -- rent, insurance, and supplies. 

This video was produced in partnership with the UBC Sauder School of Business.

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To review the basics: https://youtu.be/0_Gtr1tO0r8

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0:00 Review of accrual-based accounting
1:13 What are prepaid expenses?
2:17 Example 1: prepaid insurance
4:24 Example 2: prepaid rent
6:21 Example 3: prepaid supplies
8:26 Summary and takeaways

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🛌 Special Thanks To 🛌
Scripting and Filming by Maddie Zapach
Animating and Editing by Arkie Liu
Advising by Dr. Xin Zheng

For more information, please contact businessdebunked@gmail.com

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