What Type of Account Is Prepaid Rent,and What Is Its

question 131

Multiple Choice

What type of account is Prepaid Rent,and what is its normal balance?

• A) It is an expense account and has a debit balance.
• B) It is a liability account and has a credit balance.
• C) It is a revenue account and has a credit balance.
• D) It is an asset account and has a debit balance.

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Definitions:

Direct Labor

The wages of workers or employees who are directly involved in the production of goods or services.

Applied Factory Overhead

The estimated amount of factory overhead costs assigned to individual units of production.

Continuous Process

A manufacturing or production process that operates 24/7 without interruption, typically in industries like chemicals or oil refining.

Gallons of Output

A measure of production volume, specifically the quantity of output produced or processed, quantified in gallons.