When a Prepaid Expense Initially Recorded as an Asset Is

question 34

Multiple Choice

When a prepaid expense initially recorded as an asset is incurred, the adjusting entry includes ________.

• A) a debit to an asset
• B) a credit to a liability
• C) a credit to an expense
• D) a debit to an expense

---

Definitions:

Responding

The act of replying or reacting to something.

Forming Opinion

is the process through which individuals develop their views or beliefs about a topic or issue.

Downward Communication

A form of organizational communication that flows from higher levels of the organizational hierarchy to lower levels, such as from management to employees, often used to issue directives or provide information.

Organizational Goals

The objectives or targets that an organization aims to achieve, which guide its operations and strategic direction.