How are prepaid expenses classified in the statement of financial position?
A)current asset.
B)non-current asset.
C)non-current liability.
D)current liability.

Question

Quizplus · Accepted Answer

Prepaid expenses represent payments made in advance for goods or services that will be received in the future. Since these expenses will be used within one year, they are classified as current assets in the statement of financial position.

How Are Prepaid Expenses Classified in the Statement of Financial