The entry to record the expiration of part of the Prepaid Rent Expense will:
A)decrease total liabilities and increase total expenses at the end of the month.
B)decrease total assets and decrease total expenses at the end of the month.
C)increase total assets and increase total expenses at the end of the month.
D)increase total assets and decrease total expenses at the end of the month.

Question

Quizplus · Accepted Answer

When prepaid rent expires, it is recognized as an expense, increasing total expenses and decreasing the prepaid rent asset, which decreases total assets.

The Entry to Record the Expiration of Part of the Prepaid