Explain the difference between Prepaid Rent and Unearned Revenue.
What will be an ideal response?
Answer:
Prepaid Rent is an asset account that represents the payment of rent expense in advance. It is considered an asset because the prepayment provides a benefit in the future.
Unearned Revenue is a liability account that occurs when a company receives cash before providing a service or delivering a good. The company owes a service or good to the customer or a refund, thus making this a liability.
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The direct cause of market fragmentation is the large number of new technological products introduced annually
Indicate whether the statement is true or false
After looking at the ads in her Sunday paper, Ruby decided to visit a local nursery and buy potting soil at $1.99 a bag. The regular price is $4.99 a bag. While Ruby was there she also purchased three bushes, six flowering plants, and a bird bath
You can infer from this information that the nursery used the bags of potting soil as a ________. A) loss leader B) freemium C) bait-and-switch D) price line E) reference price