What Type of Account Is Prepaid Rent and What Is

question 35

Essay

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

• A) Expense and debit
• B) Liability and credit
• C) Revenue and credit
• D) Asset and debit

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Definitions:

Firm

A business organization, such as a company or partnership, engaged in commercial, industrial, or professional activities.

Organization

A structured group of individuals working together to achieve common goals.

Poisson Probability Distribution

Describes the probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate.

Business Processes

A set of tasks and activities that are sequentially organized to achieve a specific organizational goal or objective.