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Commerce · Q126

Accounting

Graduate and Post Graduate · Commerce · question 126

Q126

Postage stamps on hand are considered as

A.
Bank balance
B.
Prepaid expenses
Answer
C.
Accounts receivable
D.
Creditors

Answer: Option B

Solution

Answer: Option B
Solution:
Postage stamps on hand are considered as Prepaid expenses. Prepaids are any expense the business pays for in advance, such as rent, insurance, office supplies, postage, travel expense, or advances to employees.