prepaid exp is the exp paid in advance

Deferred exp are exp the benefit of which will accrue for more than a year

Originally posted by : Ravikant
	prepaid exp is the exp paid in advance Deferred exp are exp the benefit of which will accrue for more than a year

For Example, Insurance premium paid is prepaid,i.e, paid before it is due while Payment towards advertisement is deferred, i.e, incurred in bulk at the single time, but benefits of which can be received for upcoming years.

prepaid exp is the exp paid in advance
Deferred exp are exp the benefit of which will accrue for more than a year..

it generally for 1 years but deffered is more than 3-5 years...

prepaid Exps. Means Paid in advance

and Differed Epxs. means the nature of exps is revenue but the benefit get more than one year

agree with other friends

i too agree with others opinion

i agree with above views

Originally posted by : ABHIJEET DESHPANDE
	Originally posted by : Ravikant prepaid exp is the exp paid in advance Deferred exp are exp the benefit of which will accrue for more than a year For Example, Insurance premium paid is prepaid,i.e, paid before it is due while Payment towards advertisement is deferred, i.e, incurred in bulk at the single time, but benefits of which can be received for upcoming years.

 agree....

Prepaid expenses are those which are paid in advance and their benefit is received later

Deferred expenses are those whose expenses which are spread over a number of years.