Which of the following accounts may be thought of as stored costs that are carried forward to future periods rather than immediately recorded as an expense?
A)Prepaid insurance
B)Utilities expense
C)Salaries expense
D)Depreciation expense
E)Cost of goods sold

Question

Quizplus · Accepted Answer

Prepaid insurance represents an advance payment of insurance premiums and is considered a stored cost. It is not immediately recorded as an expense but is carried forward to future periods as the insurance coverage is used. The other options are all expenses that are recognized and recorded immediately.

Which of the Following Accounts May Be Thought of as Stored