Question

Prepaid accounts (also called prepaid expenses) are generally: A. Payments made for products and services that never expire. B. Classified as liabilities on the balance sheet. C. Decreases in equity. D. Assets that represent prepayments of future expenses.

Answer 1

Answer:

D. Assets that represent prepayments of future expenses.

Explanation:

Someone creates a prepaid account so that money is set aside to use on future expenses.