Is Prepaid Rent a Current Asset? Is It Debit or Credit
Reading Time: 5 minutesThe appropriate accounting treatment for prepaid rent and rent expense may vary depending on the company’s specific circumstances and the rental agreement’s terms. The effect of these entries is also recorded in the company’s income statement and the balance sheet. In the period when prepaid prepaid rent assets or liabilities rent is paid but not due, there will be no record in the income statement. Therefore, it fulfills the definition of the current assets and is recorded under the head of current assets on the…