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Question
Amount of prepaid expense is _______ from particular expense.
Amount of prepaid expense is _______ from particular expense.
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Solution
The correct option is B Deducted
When expenses are paid they are deducted. However, because of the general rule regarding prepaid expenses, simply prepaying an expense does not make it immediately deductible (barring an exception due to the 12-month rule).
When expenses are paid they are deducted. However, because of the general rule regarding prepaid expenses, simply prepaying an expense does not make it immediately deductible (barring an exception due to the 12-month rule).
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