Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) A prepayment is shown as a debit on the statement of financial position, as a current asset
B) A prepayment is shown as a credit on the income statement, reducing the amount of the expense that has already been recorded
C) When there is an increase in a prepayment, thee amount of the increase is deducted from the expense on the income statement
D) All of the above statements are correct