This article focus to Discuss and Analysis on Prepaid Expenses. Here briefly analysis Prepaid Expenses process with example. Prepaid expenses are assets that become expenses as they expire or get worn-out. For example, office supplies are regarded as an asset until they are used during doing business, at which time they become an expense. At the end of accounting period, adjusting entries are necessary to recognize the portion of prepaid expenses that have grown actual expenses through employ or the passage of time.