Under accrual basis accounting,unexpired costs are considered to be ________.

Question

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Under accrual basis accounting, unexpired costs are considered as assets because they represent costs that have been paid for, but have not yet been used up or consumed. As time passes and the costs expire, they are gradually recognized as expenses through the process of depreciation, amortization, or other means. Therefore, unexpired costs do not become expenses until they have been consumed or become obsolete, regardless of whether cash has been paid or not.

Under Accrual Basis Accounting,unexpired Costs Are Considered to Be ________