Select the account types for these items:
$\bullet$Rent received in advance
$\bullet$Mortgage
$\bullet$Prepaid expenses
$\bullet$Rates

Question

Quizplus · Accepted Answer

- Rent received in advance is a liability because it represents an obligation to provide a service in the future.
- Mortgage is also a liability because it represents a debt that needs to be repaid in the future.
- Prepaid expenses are assets because they represent payments made in advance for goods or services that will be received in the future.
- Rates are expenses because they represent costs incurred in running the business.

Select the Account Types for These Items ∙\bullet∙ Rent Received in Advance

Select the Account Types for These Items $\bullet$ Rent Received in Advance