An asset-expense relationship exists with
A) liability accounts.
B) revenue accounts.
C) prepaid expense adjusting entries.
D) accrued expense adjusting entries.

Question

Quizplus · Accepted Answer

Prepaid expense adjusting entries establish an asset-expense relationship because they involve recording expenses that have been paid in advance and are recognized as assets until the benefit is actually consumed or the service period lapses, at which point they are expensed.

An Asset-Expense Relationship Exists with