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

question 105

Multiple Choice

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

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Definitions:

Bank Statement

A monthly or periodic document summarising the financial transactions and balance in a person's bank account.

Reasonable Care

A legal standard that requires individuals to act with the same level of caution and attention that a reasonably prudent person would exhibit under similar circumstances.

Collecting Bank

A bank that processes checks and other negotiable instruments on behalf of a depositor, collecting funds from the bank on which the instruments are drawn.

Restrictive Endorsement

A limitation placed on the use of a check or other negotiable financial instrument, specifying conditions under which it can be transferred or cashed.