All of the Following Are True Regarding Prepaid Expenses Except

question 110

Multiple Choice

All of the following are true regarding prepaid expenses except:

• A)They are paid for in advance of receiving their benefits.
• B)They are assets.
• C)When they are used,their costs become expenses.
• D)The adjusting entry for prepaid expenses increases expenses and decreases liabilities.
• E)The adjusting entry for prepaid expenses increases expenses and decreases assets.

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Definitions:

Osmosis

Diffusion of water across a selectively permeable membrane; occurs in response to a difference in solute concentration between the fluids on either side of the membrane.

Sieve Elements

Living cells that compose sugar-conducting sieve tubes of phloem. Each sieve tube consists of a stack of sieve elements that meet end to end at sieve plates.

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to higher concentration.

Sink Cells

Cells that act as repositories for the products of photosynthesis or other metabolic activities, often located in different parts of a plant.