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What account is used when we pay rent in advance for an office building?

A) Rent Expense
B) Prepaid Rent
C) Accrued Rent
D) Rent Payable

1 Answer

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Final answer:

The account used when we pay rent in advance for an office building is Prepaid Rent.

Step-by-step explanation:

The account used when we pay rent in advance for an office building is B) Prepaid Rent. This is an asset account that represents the rent paid in advance and is gradually expensed over time as the rent period is consumed. It is classified as a current asset on the balance sheet.

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