Prepaid Expenses Are Eventually Expected to Become

question 20

Multiple Choice

Prepaid expenses are eventually expected to become

• A)expenses when their future economic value expires
• B)revenues when services are performed
• C)expenses in the period when they are paid
• D)revenues when the liability is no longer owed

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Definitions:

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

Draft Payable

A document instructing the payment of a specified amount of money, typically used in international trade.

Negotiability

The quality of a document (such as a check or note) signifying it can be transferred to another holder, who then has the legal right to enforce it.

Revised Article 1

Refers to the updated first Article of the Uniform Commercial Code (UCC), which standardizes laws in the sales and leasing of goods across the United States.