Asked by Austin Parker on May 04, 2024
Verified
Prepaid expense would appear on which financial statement?
A) Balance Sheet
B) Income Statement
C) Owner's Equity Statement
D) None of the above answers are correct.
Prepaid Expense
Prepaid Expense represents payments made for expenses which benefits have not yet been received, recognized as assets until they are incurred.
Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial position.
- Comprehend the proper classification of accounts.
- Comprehend the financial reports where various accounts are listed.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
A
Explanation :
Prepaid expenses are considered current assets and appear on the balance sheet. They represent payments made for goods or services to be received in the future.
Learning Objectives
- Comprehend the proper classification of accounts.
- Comprehend the financial reports where various accounts are listed.