GB 518 RANK Career Path Begins/gb518rank.com GB 518 RANK Career Path Begins/gb518rank.com | Page 45

Business entity principle
Matching principle
Full disclosure principle

Question 25. Question :

Prepaid expenses are:

Payments made for products and services that do not ever
expire
Classified as liabilities on the balance
sheet
Decreases in retained earnings
Assets that represent prepayments of
future expenses
Promises of payments by customers
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