Prepaid expenses appear in the
A)Operating Expenses section of the income statement.
B)Current Liabilities section of the balance sheet.
C)Other Expenses section of the income statement.
D)Current Assets section of the balance sheet.

Question

Quizplus · Accepted Answer

Prepaid expenses are expenses that have been paid for in advance but haven't been utilized yet. Hence, they are considered assets and are listed in the Current Assets section of the balance sheet.

Prepaid Expenses Appear in the