Asked by
Marisleysis Majurie
on Nov 12, 2024
Verified
Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheet as a (n)
A) asset
B) liability
C) owner's equity account
D) contra liability
Prepaid Rent
An asset account showing the amount of rent payments made ahead of time, indicating rent that has been paid but not yet incurred.
Tenant's Balance Sheet
A tenant's balance sheet is a financial statement that details a tenant's financial position at a given time, including assets, liabilities, and equity, specific to their rental obligations and resources.
Owner's Equity Account
Represents the amount of capital that the owner or owners of an entity have contributed, including profits retained in the business and personal withdrawals.
- Gain an understanding of assets, liabilities, and equity and their application in balance sheet analysis.
- Identify the correlation between prepaid expenses, accrued expenses, and their respective adjustments.
Verified Answer
KS
Learning Objectives
- Gain an understanding of assets, liabilities, and equity and their application in balance sheet analysis.
- Identify the correlation between prepaid expenses, accrued expenses, and their respective adjustments.