Failure to record the expired amount of prepaid rent expense would not
A)understate expense.
B)overstate net income.
C)overstate owners' equity.
D)understate liabilities.
E)All of these choices would result from failure to record expired prepaid rent.

Question

Quizplus · Accepted Answer

Failure to record the expired amount of prepaid rent would not understate liabilities because prepaid rent is an asset account, not a liability account.

Failure to Record the Expired Amount of Prepaid Rent Expense