Prepaid expenses are

a. paid and recorded in an asset account before they are used or consumed.

b. paid and recorded in an asset account after they are used or consumed.

c. incurred but not yet paid or recorded.

d. incurred and already paid or recorded.

Question

Jaiden Watson

Business

9 January, 02:46

Prepaid expenses are

a. paid and recorded in an asset account before they are used or consumed.

b. paid and recorded in an asset account after they are used or consumed.

c. incurred but not yet paid or recorded.

d. incurred and already paid or recorded.

+1

Answers (1)

Know the Answer?

Allison Blackwell · Answer 1

The correct answer is letter "A": paid and recorded in an asset account before they are used or consumed.

Explanation:

A Prepaid Expense is an asset on the Balance Sheet. These expenses are paid in advance in full for goods that have not been received yet or services that have not been rendered still. For accounting purposes, the amount reported as a current asset decreases every month until the total amount of the prepaid expense is used up.

Prepaid expenses area. paid and recorded in an asset account before they are used or consumed.b. paid and recorded in an asset account after they are used or consumed.c. incurred but not yet paid or recorded.d. incurred and already paid or recorded.

Prepaid expenses are

a. paid and recorded in an asset account before they are used or consumed.

b. paid and recorded in an asset account after they are used or consumed.

c. incurred but not yet paid or recorded.

d. incurred and already paid or recorded.