Prepaid Expenses Classified as Current Assets Represent

question 21

Multiple Choice

Prepaid expenses classified as current assets represent:

• A)current year expenses that have been accrued.
• B)cash payments in the current year that will be recognized as expenses and matched against revenues of the next year.
• C)cash that has been segregated to pay for future expenses.
• D)expenses of the current year that have been paid in advance.