Randolf and Tenisa pay themselves a salary every month that is reported as a business expense on Comfy Home's financial statements.

Randolf and Tenisa pay themselves a salary every month that is reported as a business expense on Comfy Home's financial statements. For their trip to Shanghai/Macao, they want to take an advance of $2000 on their next month's wages to give them additional spending money in Macao.

How should this advance be classified in Comfy Home's financial statements?

1. 1) As an expense.
2. 2) As a prepaid expense.
3. 3) As an increase in Tenisa and Randolf's monthly wages. 

I believe the correct answer is # 1 expense . Please advise.