Multiple Choice Question Which of the following financial statement line items is not an expense? Rent Expense O Advertising Expense O Preparies and Wages Expense

The correct answer is **"Preparies and Wages Expense"**. Here's why: - **Rent Expense**: This is a standard expense recorded on the income statement, representing the cost incurred for renting property or equipment. - **Advertising Expense**: This is also a standard expense, representing the costs associated with promoting the business's products or services. - **Preparies and Wages Expense**: Assuming "Preparies" is a typo and intended to be "Prepaid Expenses," this item is **not** an expense. **Prepaid Expenses** are considered **assets** on the balance sheet because they represent payments made in advance for goods or services to be received in the future. Only the portion that has been used or has expired is recognized as an expense over time. Therefore, among the options provided, **"Preparies and Wages Expense"** (interpreted as including Prepaid Expenses) is **not entirely an expense**. **Answer:** Preparies and Wages Expense is not an expense.