A prepaid expense would be classified as
A) an expense.
B) an unearned revenue.
C) a liability.
D) an asset.
E) cost of goods sold.

Name: A prepaid expense would be classified as A) an expense. B) an unearned revenue. C) a liability. D) an asset. E) cost of goods sold.
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Question

Quizplus · Accepted Answer

A prepaid expense is an expense that has been paid in advance but has not yet been used up or consumed. It is an asset because the company still has the right to use or benefit from the item or service paid for in advance.

A Prepaid Expense Would Be Classified as