Which of the following is considered an asset until consumed?
A) Accounts payable
B) Prepaid expense
C) Accounts receivable
D) Stockholders' equity

Question

Quizplus · Accepted Answer

Prepaid expense is an asset because it represents a payment made in advance for goods or services that will be received in the future. It is considered an asset until it is consumed or used up. Accounts payable and accounts receivable are considered liabilities and stockholders' equity is considered owner's equity, none of which are assets until they are realized or received.

Which of the Following Is Considered an Asset Until Consumed