Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)
A) asset
B) liability
C) contra asset
D) stockholders' equity

Question

Quizplus · Accepted Answer

Prepaid advertising represents an advance payment for future advertising services to be provided. As such, it is considered an asset and is reported on the balance sheet under the current assets category.

Prepaid Advertising, Representing Payment for the Next Quarter, Would Be