Asked by Braxton Terrazas on May 27, 2024
Verified
Which of the following would not be included under the account category of expenses within the chart of accounts?
A) Cost of goods sold.
B) Interest expense.
C) Prepaid insurance expense.
D) Income tax expense.
Prepaid Insurance Expense
A current asset account that represents prepayments for insurance coverage, which will be expensed over time as the insurance coverage expires.
Expenses
Costs incurred by a business in the process of earning revenue, often categorized as operating or non-operating.
- Detect and discriminate among the primary types of fiscal reports.
Verified Answer
NG
Nardia GreenwoodMay 28, 2024
Final Answer :
C
Explanation :
Prepaid insurance expense is a prepaid asset that will eventually be recognized as an expense, but it does not belong in the account category of expenses in the chart of accounts. The other options are all typical expenses that would be included in this account category.
Learning Objectives
- Detect and discriminate among the primary types of fiscal reports.
Related questions
Which of the Following Assumptions Implies That a Business Can ...
Where Would Changes in Stockholders' Equity Resulting from Financing Provided ...
Which of the Following Events Will Cause Retained Earnings to ...
Which of the Following Is Being Applied When,under Certain Conditions,the ...
Which of the Following Describes the Primary Objective of Financial ...