When existing assets are used up in the ordinary course of business:
A) an expense is recorded.
B) unearned revenue is recorded.
C) an accrual is recorded.
D) a prepaid expense is recorded.

Question

Quizplus · Accepted Answer

When existing assets are used up in the ordinary course of business, it represents a consumption of resources that have already been acquired and accounted for as assets. Thus, this consumption is recognized as an expense in the period in which it occurs.

When Existing Assets Are Used Up in the Ordinary Course