The Account Title Used for Recording the Prepayment of Rent

question 13

Multiple Choice

The account title used for recording the prepayment of rent for a building in the future is:

• A)prepaid rent.
• B)rent payable.
• C)rent revenue.
• D)rent expense.

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Definitions:

Payments to Vendors

Money transfers made by a business to its suppliers for goods or services received.

Demand Deposit

Bank accounts that allow the holder to withdraw funds without prior notice, such as a checking account.

Marketable Securities

Financial instruments that can easily be sold or converted into cash at a value close to their market rate.

Precautionary Demand

Precautionary demand refers to the desire to hold cash or easily liquidatable assets to safeguard against unexpected financial needs or market fluctuations.