A Company Paid Next Month's Rent in Advance

question 48

Multiple Choice

A company paid next month's rent in advance.This would be classified as a(n) :

• A)current asset.
• B)Expense.
• C)Revenue.
• D)current liability.

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Definitions:

Partnership Agreement

A contract between partners in a business venture, specifying the terms of the partnership, roles, responsibilities, and profit-sharing.

Contract Elements

Essential components required for a contract to be legally binding, including offer, acceptance, consideration, and mutual intent.

Ongoing Business

A company or an enterprise that is actively engaged in continuous operations or activities.

Partnership Act

A legal framework governing the rights, duties, and liabilities of partners in a business partnership.