Question

multiple choice question
which of the following accounts is considered a prepaid expense?
accounts payable
supplies
wages expense
utility expense

Explanation:

• Accounts payable is a liability (amount owed to others), not a prepaid expense.
• Supplies are purchased in advance and used over time; until used, they are classified as a prepaid expense (a current asset).
• Wages expense and utility expense are expenses that are recognized when incurred, not prepaid amounts.

Answer:

B. Supplies