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Prepaid expenses are eventually expected to become a.expenses when their future economic value expires or is used up b.revenues when the liability is no longer owed c.expenses in the period when they are paid d.revenues when services are performed

Respuesta :

Answer:

a.expenses when their future economic value expires or is used up b.

Explanation:

The term prepaid refers to the advance payment for a particular thing

And, the prepaid expense is the advance payment that is held for an expense , it is expired when it is used.

The journal entries are shown below:

1. Prepaid expense A/c Dr XXXXX

        To Cash A/c XXXXX

(Being the payment is recorded)

2. Expense A/c Dr XXXXX

      To Prepaid insurance A/c XXXXX

(Being the expense account is recorded)

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