All of the Following Are Regarding Prepaid Expenses Except

question 217

Multiple Choice

All of the following are 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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