Prepaid Rent vs. Rent Expense?

Q: How would I know if a certain transaction about rent would fall under Prepaid rent or rent expense?

A: Look at the period (year) the rent expense is for. Usually in an accounting question they will give you the rent paid for a number of months. Some of those months will fall in the current year 2009 (for example), and some will fall in year 2010 (for example). Rent amount in 2009 is rent expense, rent in 2010 is prepaid rent (asset).

Click here to post comments

Return to Ask a Question About This Lesson!.

Enjoying this Website?
Help Support it with a Donation


Advertise on

All the lessons on this site and much, much more...

Accounting Basics: Complete Guide

Available Now On

Get Your Degree!

Find schools and get information on the program that’s right for you.

Powered by

Subscribe to
The Student Accountant newsletter

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you The Student Accountant.