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AnnZ [28]
1 year ago
13

Prepaid expenses, such as prepaid rent, should be ______ by the benefits that were used up during the accounting period.

Social Studies
1 answer:
Sever21 [200]1 year ago
7 0

Prepaid expenses, should be decreased  by the benefits that were used up during the accounting period.

A prepaid expense is a form of balance-sheet asset that results from a company making advance payments for services or products that will be received in the future. Prepaid expenses are registered as assets, but their valuation is deducted from the income statement over time. Unlike traditional expenses, the prepaid expense will provide value to the business over the duration of several accounting periods. Prepaid expenses should be reduced by the benefits used during the accounting period.

Learn more on Prepaid expenses-

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