Jiande city social security total advance payment

Prepayment is a subject of current assets. Neither the down payment for purchasing materials nor the advance payment for purchasing equipment has any influence on the total assets at the end of the period. The down payment of materials is still current assets, and the down payment of equipment is fixed assets. Total assets have not changed.

Advance payment refers to the amount paid by an enterprise to a supplier in advance in monetary funds or monetary equivalents in accordance with the provisions of the purchase contract. In daily accounting, prepayments are recorded according to the actual amount paid, such as prepayments for materials, purchases, and prepayments for agricultural and sideline products that must be paid first and then recovered.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.