Rent paid in advance is called a(n)
A) expense.
B) revenue.
C) asset.
D) liability.

Name: Rent paid in advance is called a(n) A) expense. B) revenue. C) asset. D) liability.
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Question

Quizplus · Accepted Answer

Rent paid in advance is considered an asset because the tenant has already paid for a future benefit (using the property), which can be used in the future. The prepaid rent amount will be recorded as an asset in the tenant's balance sheet until it is consumed or used up over time.

Rent Paid in Advance Is Called A(n)