Junior Finance Executive Interview Questions and Answers

Prepaid rent is recorded as an asset in the balance sheet.

• The journal entry for prepaid rent involves debiting the prepaid rent account and crediting the cash account.

• Prepaid rent is classified as a current asset in the balance sheet.

• It represents the rent paid in advance for a future period of time.

• As the time period covered by the prepaid rent elapses, it is recognized as an expense in the income statement.

• Examples of prepaid rent include paying rent for a commercial space ...read more