A Prepaid Expense Would Be Classified as

question 2

Multiple Choice

A prepaid expense would be classified as

• A) an expense.
• B) an unearned revenue.
• C) a liability.
• D) an asset.
• E) cost of goods sold.

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Definitions:

Capital Expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Cash Provided

Funds that have been generated or received by a company, often referring to cash flow from operating activities.

Dividends Paid

The portion of a company's earnings that is distributed to shareholders, usually in the form of cash or additional shares.

Cash Payments

Transactions that involve the transfer of cash from one entity to another.