What Type of Account Is Prepaid Rent and What Is

question 48

Multiple Choice

What type of account is Prepaid Rent and what is its normal balance?

• A)expense and debit
• B)liability and credit
• C)revenue and credit
• D)asset and debit

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Definitions:

Required Rate of Return

The minimum return an investor expects to earn on an investment, considering its risk level and alternative opportunities.

Margin

The difference between the selling price of a product or service and its cost, expressed as a percentage of the selling price.

Turnover

A measure of a company's sales or revenues relative to the average value of its assets, inventory, or employees.

Return on Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested.