As prepaid expenses expire with the passage of time the correct adjusting entry will be a

A) debit to an asset account and a credit to an expense account.
B) debit to an expense account and a credit to an asset account.
C) debit to an asset account and a credit to an asset account.
D) debit to an expense account and a credit to an expense account.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Prepaid Expenses

Costs that are paid for in advance and recorded as assets until they are used or consumed, at which point they become expenses.

Asset Account

Represents a resource owned or controlled by a company that is expected to provide future economic benefits.