If prepaid rent has been debited it is likely that A the rent was paid for three

Question

If prepaid rent has been debited it is likely that A the rent was paid for three months in advance B a bill for the past months rent was received C this months rent was paid D all of the above If prepaid rent has been debited it is likely that A the rent was paid for three months in advance B a bill for the past months rent was received C this months rent was paid D all of the above A the rent was paid for three months in advance B a bill for the past months rent was received C this months rent was paid D all of the above

Explanation / Answer

Prepaid rent is an asset account.

Prepaid rent is debited when the rent have not incurred but is paid in advance.

When the rent is actually incurred, rent expense is debited and the prepaid rent is credited.

The answer is - A.

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