Prepaid expenses are classified in the statement of financial position as:

Name: Prepaid expenses are classified in the statement of financial position as:
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Question

Quizplus · Accepted Answer

Prepaid expenses are expenses that have been paid for in advance but have not yet been consumed. Therefore, they are considered an asset on the statement of financial position until they are used up or fully expended. As they are expected to be utilized within one year, they are classified as a current asset.

Prepaid Expenses Are Classified in the Statement of Financial Position