A prepaid expense occurs when a company pays in advance for a service or goods for which the benefit extends beyond the current accounting period True False
Question
Solution 1
Answer
The statement is True.
A prepaid expense is defined as a payment made for goods or services that are to be received in the future, meaning the benefit of the service or goods will extend beyond the current accounting period. For example, if a company pays a yearly insurance premium Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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