Prepaid expenses are valued in Balance sheet at • Prepaid expenses-th
Right Answer is: D
• Prepaid expenses-these are future expenses that have been paid in
Advance even before occurrence of expenses.
• The prepaid expenses that will be used up within one year are entered in company’s balance sheet as a current asset.
• Prepaid expenses are valued in Balance sheet at Cost less expired portion.
• Example- advance payment of six-month insurance premium.