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What type of adjustment will building management make to their trial balance worksheet for the $3,000 they paid their landscaper up front for work that totaled $12,000
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What type of adjustment will building management make to their trial balance worksheet for the $3,000 they paid their landscaper up front for work that totaled $12,000

User Linus Oleander
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6 votes

Answer: a. Prepaid expenses

Step-by-step explanation:

Prepaid expenses are payments made for expenses that have not been incurred yet. In other words, the company is paying in advance for expenses it will incur in future.

By paying $3,000 towards work to be done on their landscaper even though work has not started yet, the company is paying for an expense it will incur in future so the relevant adjustment is Prepaid expenses.

User Dinesh ML
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