Multiple Choice
All of the following are true regarding prepaid expenses except:
A) They are paid for in advance of receiving their benefits.
B) They are assets.
C) When they are used,their costs become expenses.
D) The adjusting entry for prepaid expenses increases expenses and decreases liabilities.
E) The adjusting entry for prepaid expenses increases expenses and decreases assets.
Correct Answer:

Verified
Correct Answer:
Verified
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