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Introduction to Partnership and Partnership Final Accounts — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsBook Keeping & AccountancyIntroduction to Partnership and Partnership Final Accounts2 Marks
Question
Prepaid expenses are treated as liabilities.
✓

Answer

This statement is False.
Prepaid expenses are expenses that are paid before they are due. Therefore, they are considered an asset of the business organization.

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