If an adjusting entry includes a debit to Rent Expense,that would indicate that the payment of rent had been previously recorded as a(n)________.
A)prepaid expense
B)depreciation expense
C)accrued expense
D)accrued revenue

Question

Quizplus · Accepted Answer

If the adjusting entry includes a debit to Rent Expense, it means that the payment of rent had been previously recorded as a prepaid expense. This is because prepaid expenses are initially recorded as assets (debit) when payment is made in advance and are then later recognized as expenses (debit) in the period in which the related benefits are received.

If an Adjusting Entry Includes a Debit to Rent Expense,that