Q
The adjustment to be made for prepaid expenses is____________?
-
A
A. Add prepaid expenses to respective expenses and show it as an asset
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B
B. Deduct prepaid expenses from respective expenses and show it as an asset
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C
C. Add prepaid expenses to respective expenses and show it as a liability
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D
D. Deduct prepaid expenses from respective expenses and show it as a liability
Correct Answer:
B. B. Deduct prepaid expenses from respective expenses and show it as an asset
