NOT recording the Prepaid Rent Expense used causes:
A) assets to be too low.
B) liabilities to be too high.
C) expenses to be too low.
D) revenue to be too low.

Question

Quizplus · Accepted Answer

Not recording the Prepaid Rent Expense used results in expenses being too low because the expense has not been recognized in the accounting period it relates to, leading to an overstatement of net income.

NOT Recording the Prepaid Rent Expense Used Causes