Is Prepaid Expense an Income?

No, prepaid expense is not considered income. Prepaid expenses represent payments made in advance for goods or services that will be utilized in future periods. They are recorded as assets on the balance sheet until the expense is recognized and expensed over time, aligning with the matching principle in accounting to accurately reflect the timing of expenses incurred. Thus, prepaid expenses do not contribute to current income but rather represent future expenses that will be recognized gradually.