Prepaid Rent Quiz

 AccountingQuizzes: Nature of Accounts / Analysing TransactionsParticipation is Good, try the accounting quizzes, share with your classmates.

Prepaid Rent is an example of an asset, it will be consumed periodically and will be treated as an expense for the relevant period to which it pertains.

Is this,

A) True

B) False

Prepaid Rent Quiz explained

Prepaid rent is the rent that is paid in advance, it will expense out in future months. Therefore, it is definitely an asset.

Leave a Reply