A. Liability
B. Asset
C. Accounts Payable
D. None of these

Brief facts about this MCQs:

Prepared expenses referred are referred as asset for the business. There are some types of expenses in business that are paid in advance, but the benefits for such expenses are not received or get achieved. These expenses are recorded in balance sheet as an asset. Whereas, after the benefits of the assets are realized over time, the amount is then recorded in books of accounts as an expense.
Also Read: Introduction to Accounting class 11 MCQs