Question & Answer: Prepaid rent is an expense because the payment provides a future benefit of the company O True ○ False…..

Prepaid Rent : Prepaid rent means the rent for future paid in advance and the benefits are also for the same is received in future. PRepaid rent will not shown as expesnes in the fincnacial statements but it will subtract from the expesnes and shown in the balance sheet in assets as prepaid and advances.

Becuase of future benefit we cannot charge the rent in the current revenue. So it will be charged as expenses in future.

So the given statment is False

Answer = False