prepaid asset/prepaid asset expense

[LFTM]

So i had a sac yesterday on BDAs and I've just realized that for all the questions involving a prepaid asset i haven't added expense at the end, for example i just put prepaid rent and not prepaid rent expense. When i look at the assesors reports they always have expense.  Will i lose marks for this?

im talking about general journal entries btw

[Buharrr]

well, you might not lose marks because some teachers say to do that (Prepaid Rent Expense) but some really just do not mind simply because you have used the word Prepaid that signals a current asset

it comes down to how your teacher has taught you in preparation for the SAC.

but on the exam, remember to put the Prepaid Rent EXPENSE at the end and as with Accrued Wages Expense as well
it is not necessary for depreciation e.g. depreciation of vehicle expense

[LFTM]

OK thanks, don't really remember what the teacher has said to do, don't think shes even mentioned it. Hopefully she wont deduct marks from me.

[Buharrr]

she wont, dw

good luck!

[mba]

For SACs I don't think it would matter, unless your teacher is realllllllly tight like mine.
However, for exams I would always make sure I include EXPENSE when recording any prepaid expenses.
MBA.

[Akirus]

I agree with the sentiment in this thread; just add it on for good measure in the future. Doubt you'll be penalized, though.

[TyErd]

my teacher would definitely take marks away, she's tight but the best teacher when it comes to achieving high marks.

[Fyrefly]

Prepaid rent can mean either 'prepaid rent expense' or 'prepaid rent income'... it's an important difference.

Edit: Thanks Akirus

[Akirus]

If I were your teacher, I would take marks away... prepaid rent is an asset, prepaid rent expense is an expense... it's an important difference.

No, prepaid rent expense is still an asset, it's 'rent expense' that is an expense.

i.e.

DR rent expense (expense)
     CR prepaid rent expense (asset)

[Fyrefly]

If I were your teacher, I would take marks away... prepaid rent is an asset, prepaid rent expense is an expense... it's an important difference.

No, prepaid rent expense is still an asset, it's 'rent expense' that is an expense.

i.e.

DR rent expense (expense)
     CR prepaid rent expense (asset)

Oh, you're right, I misunderstood... this isn't so bad... but still, if you have a 'prepaid rent' account, then it is either inherently an asset or a liability, depending on whether you're the one that has received it or paid it... you still really should write 'expense'... even though 'prepaid rent income' is comparatively rarer in VCE, it's still possible, and your teacher can still deduct marks if she wants to make this point.