Assume that cash is paid for rent to cover the next year. The appropriate debit and credit would be:
A) Debit Rent Expense, credit Cash.
B) Debit Prepaid Rent, credit Rent Expense.
C) Debit Prepaid Rent, credit Cash.
D) Debit Cash, credit Prepaid Rent.
Answer: C
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.