What type of account is Prepaid rent and what is its normal balance?
A) Expense and debit
B) Liability and credit
C) Revenue and credit
D) Asset and debit

Question

Quizplus · Accepted Answer

Prepaid rent is an asset account because it represents a future economic benefit (i.e. rent that has been paid in advance). The normal balance for asset accounts is debit, so the correct answer is D.

What Type of Account Is Prepaid Rent and What Is