Deferred expenses (prepaid expenses)are initially recorded as assets,but over time are expected to become

Question

Quizplus · Accepted Answer

Deferred expenses, also known as prepaid expenses, are initially recorded as assets because the company has already paid for a service or product which it will receive over time. As time passes and the company receives the benefit of the prepaid expense, it becomes an expense on the income statement. Therefore, the answer is D - expenses.

Deferred Expenses (Prepaid Expenses)are Initially Recorded as Assets,but Over Time