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

Question

Quizplus · Accepted Answer

Prepaid expenses are considered a current asset because they represent future economic benefits that have already been paid for but have not yet been received or consumed. Therefore, prepaid expenses are reported in the Current Assets section of the balance sheet.

Prepaid Expenses Appear in the