Multiple Choice
At the time a company prepays a cost
A) it debits an asset account to show the service or benefit it will receive in the future.
B) it debits an expense account to match the expense against revenues earned.
C) its credits a liability account to show the obligation to pay for the service in the future.
D) more than one of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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