Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

Q7(3)PSA

Expert-verified
Financial & Managerial Accounting
Found in: Page 154
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets

B. Long-term investments

C. Plant assets

D. Intangible assets

E. Current liabilities

F. Long-term liabilities

G. Equity

3. Prepaid rent

The correct answer is A, Current assets.

See the step by step solution

Step by Step Solution

Definition of Rent

The amount paid by an individual or organization for using someone else asset for a fixed time interval can be termed as the rent for the asset.

Reason of choice

Prepaid rent should be shown as the current asset because it provides benefit to the organization in a shorter period, generally in less than one year.

Most popular questions for Business-studies Textbooks

Icon

Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.