If business pays rent in advance and debits a Prepaid Rent account, the company receiving the rent payment will credit
A) cash.
B) prepaid rent.
C) unearned rent revenue.
D) accrued rent revenue.

Question

Quizplus · Accepted Answer

Unearned rent revenue is a liability account that represents rent received in advance. When a company receives rent in advance, it must record the transaction as a liability until the rent is earned.

If Business Pays Rent in Advance and Debits a Prepaid