Accounting Heads Quiz

#Accounting QuizPrepaid Rent, Prepaid Insurance & like prepaid items are,A) Current LiabilitiesB) Current AssetsC) Fixed AssetsD) Accounts Payable

So you have to tell which of the accounting heads cover prepaid rent and others mentioned in this quiz.

Accounting Heads/Elements Quiz

Prepaid Rent, Prepaid Insurance & like prepaid items are,
A) Current Liabilities
B) Current Assets
C) Fixed Assets
D) Accounts Payable

Quiz Explained:

Prepaid Rent and Prepaid Insurance are Prepaid expenses, that is expenses that have not yet incurred but paid in advance. As long as they remain unutilised they are current assets since they are generally expensed out within the current financial year.

The Correct answer of the this Accounting Quiz is: Prepaid Rent, Prepaid Insurance & Like Prepaid Items are Current Assets.


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