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.
C)accrued expense.
D)accrued revenue.

Question

Quizplus · Accepted Answer

If a debit to Rent Expense is recorded in an adjusting entry, it means that the payment of rent had not yet been recorded as an expense, and therefore must have been previously recorded as a prepaid expense.

If an Adjusting Entry Includes a Debit to Rent Expense