Prepaid expenses have a. not yet been paid nor recorded as expenses b. not yet been paid but recorded as expenses c. not yet been recorded as expenses but have been paid d. been recorded as expenses and paid

Question

Leonidas

Business

4 December, 13:05

Prepaid expenses have a. not yet been paid nor recorded as expenses b. not yet been paid but recorded as expenses c. not yet been recorded as expenses but have been paid d. been recorded as expenses and paid

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Answers (1)

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Mcpherson · Answer 1

c. not yet been recorded as expenses but have been paid

Explanation:

Prepaid expense is a current asset that arises when an entity pays in advance for an expense to be incurred later.

Examples include insurance, rent paid in advance etc.

Hence, Prepaid expenses have not yet been recorded as expenses but have been paid.