The following costs are initially expressed as assets but are then reclassified as expenses when they are used up,except for the following: A)inventory. B)prepaid insurance. C)prepaid rent. D)short-term investments.

Question

Quizplus · Accepted Answer

Inventory, prepaid insurance, and prepaid rent are initially recorded as assets and then expensed when used or consumed. Short-term investments, however, are not reclassified as expenses when used; they are either held as investments or sold, potentially resulting in a realized gain or loss.

The Following Costs Are Initially Expressed as Assets but Are