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A- DR. Cash - CR. prepaid expense B- DR. Prepaid expense - CR. Cash C- None
B. When we paid an amount for any future expenses the entry will be as follows
DR. Prepaid expenses
CR Cash / Accounts payable
& when the expense occur then we actually expense out the prepaid expense by the following entry
DR. Expense
CR. prepaid expense
My answer is b. debit prepaid expense cr. cash.
meaning you paid in advance the expense
B.....................................................................................
Correct answer is B..............................................
Prepaid expense for the company is current assets so so Answer B is correct
Prepaid Expense Dr
Cash Cr
B- DR. Prepaid expense - CR. Cash is the correct answer
B is the correct answer and the entry would be :-
Prepaid Expense Dr
Cash Cr
Correct Option is B.....................
B- DR. Prepaid expense - CR. Cash
