Prepayment refers to the money paid by the buyer to the supplier in advance according to the provisions of the purchase contract (including oral agreement, the same below). The advance payment can be partial or full payment. The payment of prepayments is the behavior of the purchasing unit to fulfill its obligations under the purchase contract.

The generation of advance payment means that the other party will deliver the goods to me in the future, which is my creditor's right, so it is an asset.

Advance payment refers to the payment made in advance by the supplier according to the provisions of the purchase contract. The advance payment can be partial payment or full payment.

When it happens, it means that I will offset the goods. I didn't deliver the goods after receiving the money. Of course, I owe him this. This is a debt.

Long-term deferred expenses refer to the expenses that the enterprise has spent, but the amortization period exceeds 1 year (excluding 1 year), including the expenses for major repairs of fixed assets and the expenses for improvement of leased fixed assets. The loan interest and rent that should be borne by the current period shall not be treated as long-term deferred expenses.

I have paid the expenses that should be borne by other installments now. Suppose I deposit this money here now and use it to pay the expenses later. So it is a kind of savings, and of course it is also an asset.