Incurred and paid expenses can be tricky to differentiate, depending how you record them in your personal budget. incurred and already paid or recorded . Cash received and reported as liabilities before revenue is earned are called unearned revenue 1. This problem has been solved! 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 are considered incurred when they are used, consumed, utilized or has expired. 5. Rather, they are classified as current assets since they are readily available for use. Accrued Expenses. D) incurred and already paid or recorded. Accrued Revenues. Cash received before services are … Accrued Revenues. Accrued expenses are A) paid and recorded in an asset account before they are used or consumed. Which statement is incorrect? Get more help from Chegg. 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 … 2. 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. c. cash is received after revenue is earned. incurred but not yet paid or recorded. Revenues for services performed but not yet received in cash or recorded. Unearned Revenues. a. cash is paid after expense is incurred. 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. Expenses paid in cash and recorded as assets before they are used or consumed are called prepaid expenses 2. C) incurred but not yet paid or recorded. 2. Expenses of goods and services are recorded despite no cash being paid out yet for those expenses. d. cash is paid in teh same tiime period that an expense is incurred. Expert Answer 100% (1 rating) Prepaid expenses are : paid and recorded in a assets account beforethey used or consumed. Unearned Revenues. Expenses paid in cash and recorded as assets before they are used or consumed: Term. The accounting concept that supports reporting revenues when the services are provided to customers. Prepaid Expenses Costs that expire either with the passage of time or through use. Deferrals 1. B) paid and recorded in an asset account after they are used or consumed. See the answer. Cash received before services are … Because prepayments they are not yet incurred, they are not recorded as expenses. 2. Show transcribed image text. Deferrals 1. accrued expense : Accrued expense is a liability with an uncertain timing or amount, the reason being no invoice has been received yet. D) All of the above. Expenses incurred but not yet paid in cash or recorded. Cash Basis Accounting Revenue is reported on the income statement only when cash is … Expenses paid in cash before they are used or consumed. Revenues for services performed but not yet received in cash or recorded. O Paid And Recorded In An Asset Account Before They Are Used Or Consumed. Accrued Expenses. b. cash is received before revenue is earned. 4. 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. 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. revenue recognition concept: Definition. Expenses paid in cash before they are used or consumed. Expenses are recognized when they are incurred regardless of when paid. Expenses incurred but not yet paid in cash or recorded. 2. 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