Recording Prepaid Rent would be an example of a(n):
A)deferred expense.
B)deferred revenue.
C)accrued expense.
D)accrued revenue.

Question

Quizplus · Accepted Answer

Prepaid rent is an example of a deferred expense because it is the payment of rent for future periods that have not yet been incurred. It is an asset that represents the cash paid in advance for rent and is recognized as an expense over the period for which it applies.

Recording Prepaid Rent Would Be an Example of A(n)