The Account Title Used for Recording the Payment of Rent

question 69

Multiple Choice

The account title used for recording the payment of rent in advance for an office building is ________.

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

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Definitions:

Income Statement

A financial document that reports a company's revenues, expenses, and profit over a specified time period.

Cash Balance

The amount of cash a company has available at any given time, reflecting its liquidity.

Payroll

The total amount of wages, salaries, and other earnings that a business pays to its employees.

Liquidity Ratios

Financial ratios used to measure a firm’s ability to meet its short-term obligations to creditors as they come due.