________ Represents a Debt Owed for Renting a Building

question 163

Multiple Choice

________ represents a debt owed for renting a building.

• A) Prepaid Rent
• B) Rent Payable
• C) Rent Revenue
• D) Rent Expense

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Definitions:

Accrual Of Revenue

The recognition of income by a business at the time the revenue is earned, not necessarily when cash is received.

Cash Dividend

A payment made by a company out of its profits to shareholders in the form of cash.

Indirect Method

A way of calculating cash flows from operating activities in the statement of cash flows, where net income is adjusted for changes in balance sheet items that affect cash.

Depreciation Expense

Depreciation expense is the allocated amount of the cost of a tangible or physical asset that is expensed over its useful life, reflecting wear and tear or obsolescence.