If the adjusting entry to record the current period's prepaid rent that is expired is omitted,current assets will be overstated.

Name: If the adjusting entry to record the current period's prepaid rent that is expired is omitted,current assets will be overstated.
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Question

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Omitting the adjusting entry for expired prepaid rent results in not reducing the prepaid rent account, thus overstating current assets since prepaid rent is reported as a current asset on the balance sheet.

If the Adjusting Entry to Record the Current Period's Prepaid