If There Is a Balance in the Prepaid Rent Account

question 46

Multiple Choice

If there is a balance in the prepaid rent account after adjusting entries are made, it represents a (n)

• A) deferral
• B) accrual
• C) revenue
• D) liability

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Definitions:

Auxiliary Petty Cash Record

An ancillary log kept to track petty cash transactions separately from the main cash records for better management and reconciliation.

Petty Cash Voucher

A document used to log and authorize the use of petty cash funds for small, incidental expenses.

Cash Short

A situation where the recorded cash amount is less than the expected amount, often due to errors or theft.