What type of account is Prepaid Rent?
A) Liability
B) Income
C) Asset
D) Expense

Name: What type of account is Prepaid Rent? A) Liability B) Income C) Asset D) Expense
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

Prepaid Rent is an asset account because it represents the advance payment made for rent expenses that will be incurred in future periods. The asset will decrease as the rent is used up each month and the expense is recognized.

What Type of Account Is Prepaid Rent