JAMB Accounting 2020 Objective — Question 27

Question 27 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2020 Objective paper, with the correct answer and a full explanation.

27. Rent paid in advance is a

A. A. Liability
B. B. AssetCorrect
C. C. Income
D. D. Loss

Explanation

When rent is paid in advance, it means the landlord is owing the firm; thus, it is treated like a debtor and therefore an asset.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Accounting 2020 Objective More Accounting past papers