Which of the following events does not result in the recording of an expense?
A) Payment of insurance six months in advance
B) Purchase of gasoline for fill-up of a company car
C) Receipt of a bill from the electricity company
D) Payment of wages

Question

Quizplus · Accepted Answer

Payment of insurance six months in advance is recorded as a prepaid expense, not an expense. It will be recorded as an expense over the six-month period as the insurance is used up. The other choices represent expenses that would be recorded immediately.

Which of the Following Events Does Not Result in the Recording