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)________ entry.
A) prepaid expense
B) depreciation
C) accrued expense
D) accrued revenue

Question

Quizplus · Accepted Answer

If the adjusting entry includes a debit to Rent expense, it means that the rent payment had been previously recorded as a prepaid expense. This is because rent payments are usually made in advance for a specific period of time, which is then gradually expensed over the term of the rental agreement through periodic adjustments. As a result, a debit to Rent expense means that the prepaid rent is being recognized as an expense in the appropriate accounting period.

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