Increase in the amount of prepaid expenses results in
A)Increase in cash
B)Decrease in cash
C)No change in cash
D)None of the above

Name: Increase in the amount of prepaid expenses results in A)Increase in cash B)Decrease in cash C)No change in cash D)None of the above
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

Prepaid expenses are payments made in advance for goods or services to be received in the future. When prepaid expenses increase, it means cash has been used to pay for these expenses, resulting in a decrease in cash.

Increase in the Amount of Prepaid Expenses Results in