If certain assets are partially used up during the accounting period,then:
A)nothing is recorded on the financial statements until they are completely used up.
B)a liability account is decreased and an expense is recorded.
C)an asset account is decreased and an expense is recorded.
D)nothing is recorded on the financial statements until they are replaced or replenished.

Question

Quizplus · Accepted Answer

When the company pays cash before incurring the expense,the prepayment is recorded in an asset account on the balance sheet.When an asset is partially used up during the accounting period,the expense is incurred and recorded with a debit and the asset account is decreased with a credit.

If Certain Assets Are Partially Used Up During the Accounting