Question

multiple select question
select all that apply
which of the following accounts would be considered a prepaid expense or prepaid asset account?
accounts payable
supplies
prepaid insurance
prepaid rent
common stock

Explanation:

1. Accounts payable: A liability (amount owed), not a prepaid asset.
2. Supplies: A prepaid asset; supplies are purchased in advance and expensed as used.
3. Prepaid insurance: A classic prepaid asset; premiums are paid upfront for future coverage.
4. Prepaid rent: A prepaid asset; rent is paid in advance for future occupancy.
5. Common Stock: Equity (owner's claim), not a prepaid asset.

Answer:

• Supplies
• Prepaid insurance
• Prepaid rent