b. cash is received before revenue is earned. A prepaid expense is an expenditure paid for in one accounting period, but for which the underlying asset will not be consumed until a future period. D) incurred and already paid or recorded. deferred expense: A deferred expense or prepayment, prepaid expense, is an asset representing cash paid out to a counterpart for goods or services to be received in a later accounting period. Expenses incurred but not yet paid in cash or recorded. c. cash is received after revenue is earned. revenue recognition concept: Definition. See the answer. Revenues for services performed but not yet received in cash or recorded. Accrued Revenues. Deferrals 1. Accrued Expenses. This problem has been solved! Accrued Expenses. C) incurred but not yet paid or recorded. Expenses incurred but not yet paid in cash or recorded. a. cash is paid after expense is incurred. d. cash is paid in teh same tiime period that an expense is incurred. 2. Prepaid Expenses Costs that expire either with the passage of time or through use. Expenses paid in cash before they are used or consumed. B) paid and recorded in an asset account after they are used or consumed. 2. Incurred and paid expenses can be tricky to differentiate, depending how you record them in your personal budget. Show transcribed image text. Expenses paid in cash and recorded as assets before they are used or consumed: Term. Cash received before services are … Whether you put a purchase on a credit card or use cash, you’ve incurred the expense and have paid for it, even if you still owe the credit card company for the purchase. The accounting concept that supports reporting revenues when the services are provided to customers. When the asset is eventually consumed, it is charged to expense.If consumed over multiple periods, there may be a series of corresponding charges to expense. Which statement is incorrect? Revenues for services performed but not yet received in cash or recorded. A prepaid expense, such as prepaid rent, is an asset that turns into a cash expense as the rent is used up each month A summary of all expenses is included in the income statement Income Statement The Income Statement is one of a company's core financial statements that … Expenses paid in cash and recorded as assets before they are used or consumed are called prepaid expenses 2. Rather, they are classified as current assets since they are readily available for use. 5. Definition of Prepaid Expenses. O Paid And Recorded In An Asset Account Before They Are Used Or Consumed. Unearned Revenues. Accrued Revenues. Deferrals 1. Prepaid expenses are paid and recorded in an asset account before they are used or consumed paid and recorded in an asset account after they are used or consumed. Get more help from Chegg. D) All of the above. Expenses paid in cash before they are used or consumed. Recognize revenue in the accounting period in which it is earned: Unearned Revenues. Expenses are considered incurred when they are used, consumed, utilized or has expired. Expenses are recognized when they are incurred regardless of when paid. Cash Basis Accounting Revenue is reported on the income statement only when cash is … 2. 2. Expert Answer 100% (1 rating) Prepaid expenses are : paid and recorded in a assets account beforethey used or consumed. Cash received before services are … accrued expense : Accrued expense is a liability with an uncertain timing or amount, the reason being no invoice has been received yet. Expenses of goods and services are recorded despite no cash being paid out yet for those expenses. incurred but not yet paid or recorded. incurred and already paid or recorded . Because prepayments they are not yet incurred, they are not recorded as expenses. 4. Cash received and reported as liabilities before revenue is earned are called unearned revenue 1. 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