The account title used for recording the prepayment of rent for a building in the future is:
A)prepaid rent.
B)rent payable.
C)rent revenue.
D)rent expense.

Question

Quizplus · Accepted Answer

Prepaid rent is an asset account used to record rent paid in advance. It is a current asset account, which means that it will be converted to rent expense as the period covered by the prepayment expires. Rent payable (B) is a liability account used to record rent that has been incurred but not yet paid. Rent revenue (C) is used to record revenue earned from renting out space or property, and rent expense (D) is used to record the cost of renting out space or property.

The Account Title Used for Recording the Prepayment of Rent