Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 22 - No. 27)
If a company pays rent for the next three months, which account is debited?
Rent Expense.
Cash.
Prepaid Rent.
Accounts Payable.
Explanation
The Prepaid Rent account is debited because it is an asset, and is used later as an expense.
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