The account title used for recording the payment of rent in advance for an office building is ________.
A) Prepaid Rent
B) Rent Payable
C) Rent Revenue
D) Rent Expense

Question

Quizplus · Accepted Answer

Prepaid Rent is the account title used for recording the payment of rent in advance for an office building. This is because the rent has been paid in advance and therefore represents an asset of the business until the rent period comes due. Rent Payable would represent a liability of the business, Rent Revenue would represent income earned from renting out space, and Rent Expense would represent the cost of renting the building.

The Account Title Used for Recording the Payment of Rent