How would a payment for rent paid in advance be classified?
A)Asset source transaction
B)Asset use transaction
C)Asset exchange transaction
D)Claims exchange transaction

Name: How would a payment for rent paid in advance be classified? A)Asset source transaction B)Asset use transaction C)Asset exchange transaction D)Claims exchange transaction
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Question

Quizplus · Accepted Answer

Purchasing prepaid rent increases one asset (prepaid rent)and decreases another asset (cash).Therefore,it is classified as an asset exchange transaction.

How Would a Payment for Rent Paid in Advance Be