A company paid next month's rent in advance. This would be classified as
A) a current asset.
B) Other Income.
C) Revenue.
D) a current liability.

Question

Quizplus · Accepted Answer

Paying rent in advance means the company has already paid for the use of the rented property for a future period of time. As the benefit of the payment will be received within one year from the date of the payment, it is classified as a current asset.

A Company Paid Next Month's Rent in Advance