A Prepaid Expense Is

A prepaid expense is

A) a payment received by the company in advance for the future sale of inventory or performance of services
B) an item of goods or services purchased by the company for use in its operations but not fully consumed by the end of the accounting period
C) an expense that has been incurred during the accounting period but has been neither paid nor recorded
D) an item that has been earned by the company during the accounting period but has been neither received nor recorded