If a prepaid expense is recorded as an expense, and the adjusting entry is not made at the end of the period, assets on the balance sheet will be overstated.

Name: If a prepaid expense is recorded as an expense, and the adjusting entry is not made at the end of the period, assets on the balance sheet will be overstated.
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If a prepaid expense is recorded as an expense and not adjusted, expenses are overstated and assets are understated, not overstated.

If a Prepaid Expense Is Recorded as an Expense, and the Adjusting