All of the Following Are True Regarding Prepaid Expenses Except

Multiple Choice

All of the following are true regarding prepaid expenses except:

A) They are paid for in advance of receiving their benefits.
B) When they are used, their costs become expenses.
C) They are assets.
D) The adjusting entry for prepaid expenses increases expenses and decreases liabilities.
E) The adjusting entry for prepaid expenses increases expenses and decreases assets.