If an Adjusting Entry Includes a Debit to Rent Expense,it

question 11

Multiple Choice

If an adjusting entry includes a debit to Rent Expense,it indicates that the payment of rent had been previously recorded as a(n) ________.

• A) deferred expense
• B) depreciation expense
• C) accrued expense
• D) accrued revenue

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Definitions:

Current Liabilities

Obligations or debts that a company must pay within a year from the date of the balance sheet.

Cost Method

An accounting method used to value inventory or investments at their original cost.

Treasury Stock

Refers to the shares that a company has repurchased from the stock market and holds in its own treasury.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.