The owner of an office building should report rent collected in advance as a debit to Cash and a credit to:

Name: The owner of an office building should report rent collected in advance as a debit to Cash and a credit to:
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Question

Quizplus · Accepted Answer

Rent collected in advance is a liability since the owner owes the tenant the use of the property for the period paid for in advance. Therefore, the owner should report it as a debit to Cash and a credit to a liability account such as Unearned Rent Revenue.

The Owner of an Office Building Should Report Rent Collected