The correct option is C. incurred but not yet paid or recorded.
The required details about prepaid expenses is mentioned below.
Future expenses that are paid in advance include things like rent or insurance. The first item on the balance sheet that is listed as an asset is prepaid expenses. As the benefits of the assets are eventually realized, the amount is then reported as an expense.
Prepaid expenses are those that have been paid in advance but have not yet been incurred. A prepaid expense is one that is paid in advance by a business for goods or services that will be acquired in the future and is shown as an asset on the balance sheet. A prepaid expense is held as a current asset on a company's balance sheet until it is spent.
Thus, option c is the right answer.
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