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

Question

Quizplus · Accepted Answer

Prepaid expenses are costs that have been paid but not yet incurred, reflecting a future expense, whereas accrued expenses are costs that have been incurred but not yet paid, reflecting an obligation to pay in the future.

The Primary Difference Between Prepaid and Accrued Expenses Is That