Which of the following would be the effect of a transaction to expense prepaid rent for the period?
A) increase Prepaid Rent, decrease Rent Expense
B) increase Rent Expense, decrease Cash
C) increase Prepaid Rent, decrease Cash
D) increase Rent Expense, decrease Prepaid Rent

Question

Quizplus · Accepted Answer

When prepaid rent is expensed, the asset account Prepaid Rent decreases, and the expense account Rent Expense increases. Therefore, the correct answer is D, which shows an increase in Rent Expense and a decrease in Prepaid Rent.

Which of the Following Would Be the Effect of a Transaction