As Prepaid Rent Expense is used, the asset becomes a(n):
A) liability.
B) expense.
C) contra-asset.
D) contra-revenue.

Name: As Prepaid Rent Expense is used, the asset becomes a(n): A) liability. B) expense. C) contra-asset. D) contra-revenue.
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Question

Quizplus · Accepted Answer

Prepaid Rent Expense, when used, is recognized as an expense on the income statement. This is because the benefit of the rent service is being consumed over the period, thus reducing the prepaid rent asset and increasing expenses.

As Prepaid Rent Expense Is Used, the Asset Becomes A(n)