The Adjusting Entry to Record the Expired Rent Would Be

question 30

Multiple Choice

The adjusting entry to record the expired rent would be to

• A) debit Prepaid Rent; credit Rent Expense.
• B) debit Cash; credit Prepaid Rent.
• C) debit Prepaid Rent; credit Cash.
• D) debit Rent Expense; credit Prepaid Rent.

---

Definitions:

Note Payable

An official pledge in writing to return a specified sum of cash, often with added interest, on a set future date.

Ledger

A book or digital record where financial transactions are entered, tracking the changes in each account associated with those transactions.

Trial Balance

An accounting report that lists the balances of all general ledger accounts at a particular point in time, used to ensure debits equal credits.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as total liabilities divided by total assets.