If a prepaid expense is recorded as an expense, and the adjusting entry is not made at the end of the period, expenses on the income statement will be overstated.

Question

Quizplus · Accepted Answer

If a prepaid expense is recorded as an expense and not adjusted, it means that the expense is recognized too early, leading to an overstatement of expenses on the income statement.

If a Prepaid Expense Is Recorded as an Expense, and the Adjusting