Question: For a prepaid expense, the adjusting journal entry would: A. Decrease cash B. Result in a debit to an expense and a credit to an

For a prepaid expense, the adjusting journal entry would:

A. Decrease cash

B. Result in a debit to an expense and a credit to an asset account

C. Result in a debit to a liability and a credit to an asset account

D. Cause and adjustment to prior expense to be overstated and assets to be understated

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