Nevada Administrative Code
Chapter 706 - Motor Carriers
UNIFORM SYSTEM OF ACCOUNTS FOR LIMOUSINE COMPANIES
Accounts
Section 706.401952 - Current assets: Account for prepaid expenses

1. The account for prepaid expenses must include all amounts representing prepayments, including, without limitation, insurance, rents, taxes and other items, and must be maintained and supported in such a manner as to disclose the amount of each class of prepayments. Subaccounts may be maintained for this purpose.

2. If a prepayment is made, the account must be charged with the full amount of the prepayment and subsequently credited with each portion that will ratably distribute the prepayment to expense over the benefited period. A portion ratably credited to prepaid expense must be charged to the appropriate functional accounts for operating expenses.