Question

Prepaid expenses are: incurred and already paid or recorded. O paid and recorded in an asset account after they are used or consumed. O incurred but not yet paid or recorded. O paid and recorded in an asset account before they are used or consumed.

Answer 1

Prepaid expenses are :

paid and recorded in a assets account before they used or consumed.

Prepaid expenses are future expenses that have been paid in advance. prepaid expenses are costs that have been paid but are not yet used up or have not yet expired. Generally, the amount of prepaid expenses that will be used up within one year are reported on a company's balance sheet as a current asset.

* prepaid expenses paid and recorded in a assets account after they used or consumed.

this statement is incorrect because , paid and recorded in a assets account before they used or consumed. not after they used.

* Prepaid expense are incurred and already paid or recorded

This statement Is incorrect because prepaid expenses are already paid or recoded but they are not yet to be incurred.

* incurrred but not yet paid or recorded

this statement is incorrect because incurred but not yet paid expense is called outstabding expenses rather than prepaid expenses.