Are prepaid funeral expenses treated as an asset?
What type of account is used for prepaid funeral expenses? Is it treated as an asset, investment?
Answers
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I think would call it an asset and use an asset account to record it if I was recording such a thing.
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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.
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