Which of the following is an example of a prepaid expense on the
balance sheet?
None of these are prepaid expenses
Utilities paid for the current accounting period.
Wages owed to employees.
Insurance paid for next year.
All of these are prepaid expenses.
Answer
Answer is insurance paid
for next
year
Insurance paid for next year is a expense paid in advance (
pre–paid
expense) it comes in Balance
sheet
Utilities paid for current year is current year expense.
It comes in income statement.
Wages owed to employees is a
Current Liability. it comes in balance sheet.
