Prepaid expenses classified as current assets represent: current year expenses t
ID: 2422731 • Letter: P
Question
Prepaid expenses classified as current assets represent:
current year expenses that have been accrued.
current year cash payments that will be matched against revenues of the next year.
cash that has been segregated to pay for future expenses
expenses of the current year that have been paid in advance.
A.current year expenses that have been accrued.
B.current year cash payments that will be matched against revenues of the next year.
C.cash that has been segregated to pay for future expenses
D.expenses of the current year that have been paid in advance.
Explanation / Answer
Prepaid Expenses classified as current assets represent current year cash payments that will be matched against revenues of the next year.