The entry to record the expiration of part of the prepaid rent will
A) decrease total assets and increase total expenses at the end of the month.
B) decrease total assets and decrease total expenses at the end of the month.
C) increase total assets and increase total expenses at the end of the month.
D) increase total assets and decrease total expenses at the end of the month.

Question

Quizplus · Accepted Answer

The entry to record the expiration of part of the prepaid rent will decrease total assets (as the prepaid rent asset account is reduced) and increase total expenses (as rent expense is recognized for the period).

The Entry to Record the Expiration of Part of the Prepaid