If an adjusting entry includes a debit to Rent Expense,it indicates that the payment of rent had been previously recorded as a(n)________.
A) deferred expense
B) depreciation expense
C) accrued expense
D) accrued revenue

Question

Quizplus · Accepted Answer

An adjusting entry that includes a debit to Rent Expense and a credit to a related asset account (like Prepaid Rent) indicates that the payment of rent had been previously recorded as a deferred expense. This means the rent was paid in advance and is now being recognized as an expense over the period it benefits.

If an Adjusting Entry Includes a Debit to Rent Expense,it