All of the Following Are True Regarding Prepaid Expenses Except

question 82

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 increases liabilities.
• E)The adjusting entry for prepaid expenses increases expenses and decreases assets.

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Definitions:

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