Prepaid expenses appearing in trial balance will appear in _____
A)Profit and loss account debit side
B)Profit and loss account credit side
C)Balance sheet asset side
D)Balance sheet liability side

Question

Quizplus · Accepted Answer

Prepaid expenses are considered current assets because they represent goods or services that have been paid for by the company but not yet consumed or used. These are recorded on the asset side of the balance sheet as they provide future economic benefits to the company.

Prepaid Expenses Appearing in Trial Balance Will Appear in _____