Question

Accounting Question (easy 10 points)?

An adjustment for Prepaid Rent would indicate:

a. the amount bought.

b. the amount expired.

c. the amount on hand.

d. the amount of the trial balance.

Answer

The amount on hand I believe. You are accounting for how much was used during the accounting period and it would show up on the adjusted trial balance, not the regular one.

Oct 19 at 15:20

C, the amount on hand

thx for the points btch... ( being sarcastic, nobody got the points)

Oct 19 at 19:6

This depends on the adjustment.

If you are debiting prepaid rent (+Asset) then this would indicate the amount of prepaid rent bought.

If you are crediting prepaid rent (-Asset) then this would indicate the amount of prepaid rent already used (expired).

Judging by this question and the lack of information, I would say the answer is (A), the amount bought.

Oct 19 at 23:15