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which among the sentences below best describe prepayments?

a. payments made for economic benefits that do not ever expire
b. classified as liability on the balance sheet
c. generally all combined into one assets account called "miscellaneous prepaid expense"
d. assets, which become expenses as they are used up

Respuesta :

The statement that describes prepayment is B. classified as liability on the balance sheet.

What is prepayment?

It should be noted that a prepayment simply means an accounting term that's used for the settlement of a debt in advance.

In this case, the statement that describes prepayment is that it is classified as liability on the balance sheet.

Learn more about prepayment on:

https://brainly.com/question/15188252

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