PRC-1 · Chapter 4 · Question 87 of 100
If a tenant has a rent in arrears balance of Rs. 15,000, how must the landlord report this amount in their financial statements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) As a Current Asset (Rent Receivable)
Explanation
For the landlord, rent in arrears means the tenant owes them money for past occupancy. This is an accrued income, which is a current asset.
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