In theory, the payment in advance for a one-year subscription should initially be recorded as a debit to Prepaid Expenses and a credit to Cash. During the subscription period, you would debit Subscription Expense and would credit Prepaid Expenses.

Is subscriptions a current asset?

Current accounts receivable assets represent money owed to a company for delivered goods or services. These accounts, also known as “on-credit accounts,” are cash equivalents that customers have not yet paid for. Examples include: Subscription services.

What are examples of prepaid assets?

Prepaid asset definition — AccountingTools. Books Books Listed by Title Accounting Books Finance Books Operations Books.