WAEC Book Keeping 2025 Objective — Question 38
Question 38 of 42 from the West African Examinations Council (WAEC) Book Keeping 2025 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
A prepayment is an expense paid in advance that has not yet been consumed/incurred, so it is shown as a current asset in the balance sheet.
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