Question

What type of account is prepaid​ rent, and what is its normal​ balance?

a. it is an asset account and has a debit balance.
b. it is an expense account and has a debit balance.
c. it is a liability account and has a credit balance.
d. it is a revenue account and has a credit balance?

Answer 1

Prepaid rent is an asset account with a normal debit balance that represents payments made for rent covering future periods. As time passes and the prepaid service is utilized, the asset is decreased, and a corresponding expense is recorded.

Step-by-step explanation:

The type of account for prepaid rent is an asset account, and its normal balance is a debit balance. Prepaid rent represents the payment for rent that covers a future period; hence it is regarded as a prepaid expense, an asset to the business until the expense is incurred. When prepaid rent is used up over time, the asset account will be decreased (credited) and an expense account will be increased (debited) to reflect the rent expense incurred over that period.

Answer 2

Prepaid rent is an asset account and has a debit balance.

An asset is anything intangible or tangible that can be owned, has value or and/or creates revenue.
Debit balance is normal and pertains to cash, accounts receivable, inventory, prepaid expenses, buildings and more!