Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 24 - No. 46)
What is the impact of prepaid expenses at the end of the period?
Increase in expense and decrease in assets.
Increase in assets and increase in expenses.
Decrease in assets and decrease in expenses.
Increase in assets and decrease in expenses.
Explanation
Prepaid expenses are an asset that has already been paid. When a prepaid expense expires, it reduces the expense.
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