When a tenant makes an end-of-period adjusting entry credit to the "Prepaid rent" account:
A) (S)he usually debits cash.
B) (S)he usually debits an expense account.
C) (S)he debits a liability account.
D) (S)he credits an owners' equity account.

Question

Quizplus · Accepted Answer

When a tenant makes an end-of-period adjusting entry credit to the "Prepaid rent" account, it means that part of the prepaid rent has now been used up, and thus, it is recognized as an expense. Therefore, the tenant debits an expense account, typically "Rent Expense," to reflect the cost of the rent for that period.

When a Tenant Makes an End-Of-Period Adjusting Entry Credit to the "Prepaid