PRC-1 · Chapter 3 · Question 77 of 100
In an adjusted trial balance, how is 'Prepaid Rent' classified, and in which column does its balance appear?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Asset; Debit column
Explanation
Prepaid rent is an economic resource (an asset) representing future benefits the business has already paid for. Therefore, it appears in the debit column of the trial balance.
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