Advance payment of tax is a _______.

Prepaid Expense

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General Reserve

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Interim Dividend

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Provision for Taxation

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Solution

The correct option is A Prepaid Expense
An amount paid in advance against which the services are yet to receive is a prepaid expenses and shown in balance sheet as other current assets.

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Similar questions

State the meaning of

(a) Outstanding expenses

(b) Prepaid expenses

(d) Accrued income

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