The account type and normal balance of Prepaid Expense would be
A) revenue, credit
B) expense, debit
C) liability, credit
D) asset, debit

Question

Quizplus · Accepted Answer

Prepaid Expense is an asset account, meaning it has a normal debit balance. This is because it represents amounts paid in advance for expenses that will be incurred in the future. As those expenses are eventually recognized, the prepaid amount is credited and the corresponding expense account is debited.

The Account Type and Normal Balance of Prepaid Expense Would