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If a company prepays an expense it debits an asset account to show the service or benefit it will receive in the future. it debits
If a company prepays an expense
it debits an asset account to show the service or benefit it will receive in the future.
it debits an expense account to match the expense against revenues recognized.
it credits an asset account and debits an expense account.
it credits a liability account to show the obligation to pay for the service in the future.
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