PRC-1 · Chapter 4 · Question 88 of 100
In a T-account for a specific expense (like Insurance), on which side is the opening balance of a 'Prepaid Expense' brought down (b/d) at the start of the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit side
Explanation
A prepaid expense is an asset, and asset accounts inherently carry debit balances. Therefore, the opening balance is brought down on the debit side.
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