When an item of expense is paid and recorded in advance, it is normally called a(n)
A) prepaid expense.
B) accrued expense.
C) estimated expense.
D) cash expense.

Question

Quizplus · Accepted Answer

When an item of expense is paid and recorded in advance, it is referred to as a prepaid expense. This type of expense is recorded as an asset initially and is gradually expensed over time as the benefit of the expense is realized.

When an Item of Expense Is Paid and Recorded in Advance