Of the following, which would be reported on the Income Statement?
A)Rent Expense
B)rent revenue
C)Prepaid Rent
D)both A and B

Question

Quizplus · Accepted Answer

Rent Expense and Rent Revenue are both items that would be reported on the Income Statement. Rent Expense is an expense account showing the cost of renting property or equipment, which reduces net income. Rent Revenue is an income account showing the income earned from renting out property or equipment, which increases net income. Prepaid Rent, however, is reported on the Balance Sheet as it represents a future expense that has been paid in advance.

Of the Following, Which Would Be Reported on the Income