When cash is paid for something that provides benefits only in future periods:
A) an accrued liability must be recorded.
B) a journal entry does not need to be recorded at the time of the payment.
C) an asset must be recorded at the time of the payment.
D) an unearned expense must be recorded at the time of the payment.

Question

Quizplus · Accepted Answer

When cash is paid for something that provides future benefits, it is recorded as an asset because it represents a future economic benefit to the company.

When Cash Is Paid for Something That Provides Benefits Only