What Type of Account Is Prepaid Rent

question 8

Multiple Choice

What type of account is Prepaid Rent?

• A) a liability
• B) an expense
• C) shareholders' equity
• D) an asset

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Definitions:

Contract Clause

A specific provision or section within a contract that stipulates the terms, conditions, rights, or obligations of the parties involved.

Federal Government

The national government of the United States, which operates according to the Constitution and consists of three branches: legislative, executive, and judicial.

Constitution

Essential doctrines or traditional benchmarks that shape the management of a state or equivalent institution.

Separation of Powers

A fundamental principle in constitutional law where the government is divided into distinct branches (legislative, executive, judicial), each with its own powers and responsibilities to prevent abuse of power.