an option, and then select Submit.

To classify the prepayment as an asset, which will eventually be converted into an expense

To treat the prepayment as an expense that will be temporarily recorded as a cost, allowing it to reduce the total payable amount on future bills

To record the prepayment as a liability on the balance sheet, which will eventually be converted into income when the goods or services are rendered

To defer the full payment until the vendor requests the final balance, ensuring that part of the payment is withheld until all services or goods are received and verified