If a Business Pays Rent in Advance and Increases the Prepaid

question 101

Multiple Choice

If a business pays rent in advance and increases the Prepaid Rent account the company receiving the rent payment will increase:

• A)rent expense.
• B)prepaid rent.
• C)unearned rent revenue.
• D)accrued rent revenue.

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Definitions:

Resource

An asset or input used to produce goods and services, such as labor, capital, land, and knowledge.

Nonrenewable Resource

A natural resource that cannot be readily replaced by natural means at a quick enough pace to keep up with consumption.

User Cost

The cost of using a good or service, including the opportunity cost of forgone alternatives and depreciation.

Extracting

The process of removing or obtaining a raw material from a mix, usually by physical, chemical, or mechanical means.