If the total amount for Rent Expense is inadvertently posted to Prepaid Rent at the end of the year, what will be the effect on the year-end financial statements?

Question

Quizplus · Accepted Answer

If the total amount for Rent Expense is posted to Prepaid Rent at the end of the year, assets will be overstated because Prepaid Rent is an asset account. This error will not affect expenses, revenues, or owner's equity.

If the Total Amount for Rent Expense Is Inadvertently Posted