Which of the Following Reflects the Balances of Prepayment Accounts

question 161

Multiple Choice

Which of the following reflects the balances of prepayment accounts prior to adjustment?

• A) Balance sheet accounts are understated and income statement accounts are understated.
• B) Balance sheet accounts are overstated and income statement accounts are overstated.
• C) Balance sheet accounts are overstated and income statement accounts are understated.
• D) Balance sheet accounts are understated and income statement accounts are overstated.

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