Note – Please take our quiz ‘Quiz 36 – Prepaid Expenses – (Answers)‘ on this page before going through the below answers. Only the top 3% of our audience scored 10/10 in all of them.
- Name – Quiz 36 – Prepaid Expenses – (Answers)
- Topic – Prepaid Expenses
- Answers with Explanation
Q1. Prepaid Expenses are _____.
Ans. Prepaid expenses are current assets.
Q2. Credit Card Due = 10,000, Paid on Credit Card = 13,000, Prepaid Expense = _____.
Ans. Prepaid expense = 13,000 – 10,000 = 3,000 Rs.
Q3. _____ is an example of prepaid expense.
Ans. Prepaid rent is an unexpired (prepaid) expense. This is only applicable to operating expenses & not capital expenses.
Q4. ‘Prepaid Expense A/C’ is _____ to record the journal entry for prepaid expenses.
Ans. Debit – Prepaid Expense A/C & Credit – Expense A/C, for e.g. Debit – Prepaid Rent A/C & Credit – Rent A/C
Q5. Prepaid expense is a _____ account.
Ans. Prepaid (unexpired) expense is a personal account and is shown on the assets side of a balance sheet.
Q6. Prepaid expenses are also called _____ expenses.
Ans. Such expenses are also known as unexpired expenses or expenses paid in advance.
Q7. Prepaid expenses are treated as _____.
Ans. Prepaid expenses are treated as an asset for the business.
Q8. The benefits related to prepaid expenses are received _____.
Ans. The benefits of expenses paid in advance are received in the future accounting period.
Q9. Prepaid expenses are shown in _____.
Ans. Prepaid expenses are shown on the asset side of a balance sheet.
Q10. Prepaid expenses are _____.
Ans. Prepaid expenses are those expenses which have been paid in advance, however, the benefits are not received within the same accounting year.