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Question
What do you understand by prepaid expenses?
Options:
A .  Amount which has been paid for a relative
B .  Expenses paid within the accounting period, but benefits are reaped later
C .   Expenses which have been paid for a subsidiary company
D .   Expenses which have been paid for household purposes
Answer: Option B
:
B
Prepaid expenses are expenses paid within the accounting period,but benefits are reaped later.

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