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