Are prepaid funeral expenses treated as an asset?

Geekseeker

What type of account is used for prepaid funeral expenses? Is it treated as an asset, investment?

Chris_QPW

I think would call it an asset and use an asset account to record it if I was recording such a thing.

NotACPA

This would, to my thinking, be a matter of personal choice.

Part of the decision would involve if the time frame until the funeral is known. For my late wife, those "prepaid expenses" were paid 3 days before her death (in 2007), so I recorded them as expenses.

If the time frame is unknown/indefinite, I can certainly see recording them as an asset … but I wouldn't create an account specifically for them. I have a "Personal Assets" account which records an assortment of items.