GCE Book Keeping 2015 Objective — Question 38
Question 38 of 40 from the General Certificate of Education (GCE) Book Keeping 2015 Objective paper, with the correct answer and a full explanation.
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Prepayments are shown in the balance sheet as
- A. capital
- B. liability
- C. fixed asset
- D. current assetCorrect
Explanation
Prepayments (expenses paid in advance) represent a future economic benefit to the business and are classified as a current asset.
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