Asked by Guadalupe Gomes Torres on Apr 29, 2024
Verified
Expenses paid in advance are recorded as Assets.
Expenses Paid
Refers to the outflow of cash or other valuable assets from a person or company to another entity in exchange for goods or services.
Assets
Resources owned or controlled by a business from which future economic benefits are expected.
- Distinguish between assets, liabilities, equity, revenues, and expenses.
Verified Answer
VN
victory nana qwameyMay 02, 2024
Final Answer :
True
Explanation :
Expenses paid in advance are recorded as assets because they represent future economic benefits that the company will receive or utilize in future periods.
Learning Objectives
- Distinguish between assets, liabilities, equity, revenues, and expenses.