Genuine query raised boss..
ill go slightly out of the box..
think the firm or company gets liquidated as of now,
Prepaid Expense is part of current asset why...
obviously u ll realize it from the person whom u ve paid in advance and use it to pay off the current liablities..if ur firm is gonna get liquidated...rather i change my point here,u even need not get liquidated...u infact hold the right to ask the person money back, whom u ve paid advance and use that money to pay ur creditors...
There is perhaps has to be a better explanation...however open for constructive suggestions.