adjusting entry required for a prepaid expense consists of a debit to an expense and a credit to an asset.

Name: adjusting entry required for a prepaid expense consists of a debit to an expense and a credit to an asset.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Adjusting entries for prepaid expenses involve debiting the expense account to recognize the expense incurred over the period and crediting the prepaid expense asset account to reduce its balance, reflecting the portion of the prepaid amount that has been used up.

Adjusting Entry Required for a Prepaid Expense Consists of a Debit