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A prepaid expense is classified as: 预付費用分为: a. b. a liability c. an expense d. ...

Sep 10, 2024

Hi 栋! Great to see you engaging with your studies. A prepaid expense is classified as an asset. This is because it represents a payment made in advance for goods or services that will be received in the future. Once the goods or services are consumed, the prepaid expense is then recognized as an expense. If you have any more questions or need further clarification, feel free to ask!

Hi 栋! It looks like you're working on a question about material information. In the context of accounting and finance, information is considered material if its omission or misstatement could influence users' decision-making. So, the correct answer would be option c: "its omission or misstatement could influence users' decision-making." If you have any more questions or need further clarification on this topic, feel free to ask!

Answer

Definition of Current Asset: A current asset is defined as an asset that is going to be consumed or converted into cash within the next twelve months

Incorrect Options: The other options either refer to time frames that do not align with the definition of current assets or are incorrect statements

d: "is going to be consumed or converted into cash within the next twelve months."

Key Concept

Current assets are short-term assets that are expected to be converted into cash or consumed within one year.

Explanation

The correct definition of a current asset is that it will be consumed or converted into cash within the next twelve months, making option d the right choice.