A prepaid expense is an expense that:
A) has been paid and incurred.
B) the business has paid, but not yet incurred .
C) the business has incurred, but not yet paid.
D) will be incurred and paid in the future.

Question

Quizplus · Accepted Answer

A prepaid expense refers to costs that have been paid by a business in advance of the service or benefit being received. It is an expense paid for before the company actually incurs the expense within its operations.

A Prepaid Expense Is an Expense That