Prepaid eqenses are incuded in the current assets secticn of the balance sheet because?

$1.$they were already induded in operating expenses in the income statement in the year cash was expected.

$2.$they are paid to acquire long lived assets.

$3.$they reflect paymants that were made in a priorr period that wil not be charged to expense in the current period.

$4.$ they will be consumed within one year as the operating cycle, whicheber is longer.