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Which of the following accounts has a normal credit balance?

a. Prepaid Rent
b. Notes Receivable
c. Rent Revenue
d. Rent Expense

User SLenik
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Final answer:

In accounting, Rent Revenue is the account among the choices provided that has a normal credit balance; Prepaid Rent and Notes Receivable have debit balances, and Rent Expense also has a debit balance.

Step-by-step explanation:

The question asks which of the following accounts has a normal credit balance. In accounting, different types of accounts have either a normal debit or credit balance. Asset accounts, such as Prepaid Rent and Notes Receivable, typically have a normal debit balance, while liability accounts and equity accounts, including revenue accounts like Rent Revenue, normally have a credit balance. Expenses, like Rent Expense, typically have a debit balance. Rent Revenue is an income account for a company that earns rental income from its tenants. When a payment is received from a tenant, it is recorded as a credit to Rent Revenue, increasing the balance in the account. Therefore, the account that has a normal credit balance from the options provided is Rent Revenue.

User StringVector
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