The following costs are initially expressed as assets but are then reclassified as expenses when they are used up, except for the following:
A)Inventory
B)Prepaid insurance
C)Prepaid rent
D)Short term investments

Question

Quizplus · Accepted Answer

Short-term investments are not reclassified as expenses when used up. Instead, they are financial assets that can be sold for cash or other benefits, unlike inventory, prepaid insurance, and prepaid rent, which are expensed over time as they are used or consumed.

The Following Costs Are Initially Expressed as Assets but Are