Question

The office rent for the month, regardless of when paid, is a

completely e 16. (82- Ethics Question). Whic need for an accountant to use her/his professional judgment. statements that show a net loss from operations. A. Following generally accepted accounting princi only to the independent auditors, but to management of the company as well. B. Federal securities laws regarding the issuance of misleading financial statemer professional ethics assures a company that the accountant will use integrity and C. Attaining a passing score on that part of the Uniform CPA Examination that D. A professional accountant should resign his position if he consistently produ D. Using debits to record decreases in owners' equity and credits to record in ethical conduct. 17. The office rent for the current month, regardless of when paid, is a(n) A. asset. B. liability C. revenue. D. expense. 18. (77) The matching principle is best demonstrated by: A. Offsetting the cash receipts of the period with the cash payments made dur B. Comparing one year's financial statements to the previous years' statemen C. Allocating an expense over the periods during which related revenues are

Answer 1

Ans C

Expenses

The office rent paid or payable is our expenses.

Rent is generally taken to profit and loss account since rent paid is considered as an expense and rent received is treated as an income. Suppose if rent is paid in advance it is to be seen on asset side of the balance asset as an prepaid rent