A Prepaid Expense Is

question 36

Multiple Choice

A prepaid expense is

• A)a payment received by the company in advance for the future sale of inventory or performance of services
• B)an item of goods or services purchased by the company for use in its operations but not fully consumed by the end of the accounting period
• C)an expense that has been incurred during the accounting period but has been neither paid nor recorded
• D)an item that has been earned by the company during the accounting period but has been neither received nor recorded

---

Definitions:

WHO

The World Health Organization, a specialized agency of the United Nations responsible for international public health.

Industrialized Nations

Countries characterized by advanced technological infrastructure and significant levels of industrial production.

Health Care

A broad term that refers to the maintenance or improvement of health via the prevention, diagnosis, treatment, and recovery from illness, injury, and other physical and mental impairments.

Health Insurance

A type of insurance coverage that typically pays for an insured individual's medical and surgical expenses.