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.

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Definitions:

Encourage

To give support, confidence, or hope to someone.

Menarche

The first menstrual cycle, or first menstrual bleeding, in female humans, marking the onset of reproductive capability.

Menstruation

The monthly shedding of the uterine lining in females, often associated with bleeding.

Lev Vygotsky

A Russian psychologist who developed theories on cognitive development, emphasizing the roles of cultural context and social interaction.