Which of the following describes a prepaid expense? a) An expense that has been incurred but not yet paid b) An expense that has been paid in advance c) A revenue that has been earned but not yet received d) A revenue that has been received in advance

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 37P
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Explain correct and incorrect option with explanation please.

Which of the following describes a prepaid expense?
a) An expense that has been incurred but not yet paid
b) An expense that has been paid in advance
c) A revenue that has been earned but not yet received
d) A revenue that has been received in advance
Transcribed Image Text:Which of the following describes a prepaid expense? a) An expense that has been incurred but not yet paid b) An expense that has been paid in advance c) A revenue that has been earned but not yet received d) A revenue that has been received in advance
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