Give an Example of a Prepaid Expense

question 24

Essay

Give an example of a prepaid expense. Why would a company use this account?

---

Definitions:

Faulting

A geological process that involves the fracturing and displacement of Earth's crust, often resulting in earthquakes.

Earthquake

A natural phenomenon resulting from the sudden release of energy in the Earth's crust, leading to ground shaking and, in some cases, significant destruction.

Metallic Minerals

Minerals with metallic properties, such as conductivity and shininess, often mined for use in manufacturing and construction.

Shallow Deposits

Geological accumulations of minerals, sediments or other materials that are located near the surface of the Earth.