Rent paid in advance would be considered to be a prepaid asset by the renter.

Name: Rent paid in advance would be considered to be a prepaid asset by the renter.
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Question

Quizplus · Accepted Answer

When a renter pays rent in advance, it is considered a prepaid asset because it represents an amount that has been paid for future use, which hasn't been used yet. The renter can't claim the prepaid amount as an expense until the rent is actually due and incurred.

Rent Paid in Advance Would Be Considered to Be a Prepaid