The owner of an office building should report rent collected in advance as a debit to Cash and a credit to:
A)A liability.
B)An asset other than Cash.
C)Revenue.

Question

Quizplus · Accepted Answer

Rent collected in advance is an obligation of the owner to provide the space for the agreed-upon period of time. Therefore, it should be recorded as a liability on the balance sheet, and not as revenue.

The Owner of an Office Building Should Report Rent Collected