An asset created by a payment for economic benefits that does not expire until some later time is
A) recorded as a debit to an unearned revenue account
B) recorded as a debit to a prepaid expense account
C) recorded as a credit to an unearned revenue account
D) recorded as a credit to a prepaid expense account
E) not recorded in the accounting records

Question

Quizplus · Accepted Answer

An asset created by a payment for economic benefits that does not expire until some later time is recorded as a debit to a prepaid expense account. This is because the payment made is for a future benefit, which is considered a prepaid expense. Examples of prepaid expenses include rent, insurance, and subscriptions.

An Asset Created by a Payment for Economic Benefits That