A prepaid expense $($for example, prepaid advertising or prepaid insurance$)$

A$)$ Cash received in advance from a customer before a product or service is provided.

B$)$ Reflects advance cash payments by a company for expenses before they are used or consumed.

C$)$ Salaries and Wages expenses paid to employees who worked during the previous week.

D$)$ Expenses incurred and recognized on the Income Statement that will be paid in the future.