For a Prepaid Expense, the Adjusting Entry Would

Multiple Choice

For a prepaid expense, the adjusting entry would

A) Cause a prepaid expense to be overstated and liabilities to be understated.
B) Decrease cash.
C) Result in a debit to an expense account and a credit to an asset account.
D) Result in a debit to a liability account and a credit to an asset account.
E) Result in a credit to an expense account and a debit to an asset account.