A company paid next month's rent in advance.This would be classified as a(n):
A)current asset.
B)Expense.
C)Revenue.
D)Contra-Asset.

Name: A company paid next month's rent in advance.This would be classified as a(n): A)current asset. B)Expense. C)Revenue. D)Contra-Asset.
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Question

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Prepaid rent would be classified as a current asset because it represents a payment made in advance for a future expense (rent). It will be recognized as an expense in the month(s) in which it is used.

A Company Paid Next Month's Rent in Advance