Question

prepaid expenses are treated as liabilities ​

Answer 1

$\huge\sf{Answer:-}$

ᴛʜᴇ ᴋᴇʏ ᴅɪғғᴇʀᴇɴᴄᴇ ɪs ᴛʜᴀᴛ ᴘʀᴇᴘᴀɪᴅ ᴇxᴘᴇɴsᴇs ᴀʀᴇ ʀᴇᴘᴏʀᴛᴇᴅ ᴀs ᴀ ᴄᴜʀʀᴇɴᴛ ᴀssᴇᴛ ᴏɴ ᴛʜᴇ ʙᴀʟᴀɴᴄᴇ sʜᴇᴇᴛ ᴀɴᴅ ᴀᴄᴄʀᴜᴇᴅ ᴇxᴘᴇɴsᴇs ᴀs ᴄᴜʀʀᴇɴᴛ ʟɪᴀʙɪʟɪᴛɪᴇs. ᴀ ᴘʀᴇᴘᴀɪᴅ ᴇxᴘᴇɴsᴇ ᴍᴇᴀɴs ᴀ ᴄᴏᴍᴘᴀɴʏ ʜᴀs ᴍᴀᴅᴇ ᴀɴ ᴀᴅᴠᴀɴᴄᴇ ᴘᴀʏᴍᴇɴᴛ ғᴏʀ ɢᴏᴏᴅs ᴏʀ sᴇʀᴠɪᴄᴇs, ᴡʜɪᴄʜ ɪᴛ ᴡɪʟʟ ᴜsᴇ ᴀᴛ ᴀ ғᴜᴛᴜʀᴇ ᴅᴀᴛᴇ.❤