Final answer:
Asset prepayments become expenses when they are used, not revenues, making the statement false. However, sharecroppers did pay their rent with shares of their crops, which is true.
Step-by-step explanation:
Asset prepayments do not become revenues when they expire; this statement is false. Prepaid assets are a form of prepayment that represents a service or good that a company will use in the future. As these prepayments are consumed or as the services are received over time, they are then recorded as expenses, not revenues. An example of a prepaid asset is insurance, where a company pays in advance for insurance coverage that is expensed over the coverage period. In contrast, the historical subject of sharecroppers mentioned in Exercise 17.3.3 is a separate context related to agriculture. Sharecroppers were indeed tenant farmers who paid their rent with shares of their crops, making the statement in the example true. This was a common practice in the post-Civil War Southern United States, where many farmers did not own land and would work on someone else's land in exchange for a portion of the crop yield.