The Reason for Recording a Prepaid Expense as a Current

question 26

Multiple Choice

The reason for recording a prepaid expense as a current asset is:

• A)that the prepaid item will be returned for a cash refund.
• B)that the prepaid item has not yet become an expense.
• C)that the expense has been incurred but not yet paid.
• D)to avoid recognizing an expense so net income will be higher for the current accounting period.

---

Definitions:

Reflecting Responses

Communication technique used in counseling and therapy, involving repeating or paraphrasing what a client has said to show understanding and empathy.

Less Effective

Refers to methods or processes that yield poorer results compared to other more effective options.

More Effective

Refers to an increased degree of efficacy or efficiency in achieving desired outcomes or goals compared to other methods or approaches.

Nonverbal Behaviors

Communication expressed through body movements, facial expressions, and posture rather than words.