Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A business paid its rent in advance. How does this affect the current assets and the rent expense at the year end?

  • Acurrent assets decrease; rent expense increase
  • Bcurrent assets increase; rent expense decrease
  • Ccurrent assets increase; rent expense have no effect
  • Dcurrent assets have no effect; rent expense increase

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