On a worksheet, the adjusted balance of the Prepaid Rent account is extended to the:
A)Income Statement Debit column.
B)Balance Sheet Credit column.
C)Balance Sheet Debit column.
D)Income Statement Credit column.

Question

Quizplus · Accepted Answer

Prepaid rent is a current asset that represents rent paid in advance. As it is an asset, the adjusted balance of the Prepaid Rent account is extended to the Balance Sheet Debit column, which represents asset accounts. The Income Statement does not include prepaid rent, as it is not an expense incurred during the period.

On a Worksheet, the Adjusted Balance of the Prepaid Rent