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Deferred vs prepaid

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what is the difference between deferred and pre paid?
Replies (4)

Deferred is either an Asset or Liability in future, however prepaid is always an Asset for future 

Also I will give you  an  example of  Deferred  Revenue Expenditure , like Advertisement  expenditure  may give you benefit in future or not , however  prepaid expenditure always give benefit in future .    

 

There are two types of expenditure deferred revenue expenditure and pre paid.
advance to be recoverable in cash or kind.
deferred means spread over several periods. benefit will accrue over several periods
Thanks
but my query is regarding difference between DEFERRED ASSET VS PREPAID ASSET
not in terms of expenditure
Deferred Asset is an adjustment for future , however prepaid Asset is not an adjustment, it's Asset for future.


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