It is possible to have a prepaid property tax and a property tax expense payable recorded at the same time.

Question

Quizplus · Accepted Answer

It is possible for a property owner to have prepaid part of their property tax for the year, while also having an outstanding property tax expense payable that has not yet been paid. The prepaid amount would be recorded as a current asset on the balance sheet, while the unpaid amount would be recorded as a current liability.

It Is Possible to Have a Prepaid Property Tax and a Property