A prepaid expense is an economic resource for which a business has paid cash and expects to use in its operating activities in the near future.

Name: A prepaid expense is an economic resource for which a business has paid cash and expects to use in its operating activities in the near future.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Prepaid expenses represent payments made for goods or services to be received in the future, thus they are considered assets (economic resources) because they provide future economic benefits to the business.

A Prepaid Expense Is an Economic Resource for Which a Business