The primary difference between prepaid and accrued expenses is that prepaid expenses have
A)been incurred and accrued expenses have not.
B)not been paid and accrued expenses have.
C)been paid and accrued expenses have not.
D)not been recorded and accrued expenses have.

Question

Quizplus · Accepted Answer

Prepaid expenses are costs that have been paid in advance for goods or services to be received in the future, whereas accrued expenses are costs that have been incurred (i.e., the service has been received or the expense has been generated) but have not yet been paid.

The Primary Difference Between Prepaid and Accrued Expenses Is That