when an adjustment is made for prepaid rent: \n\na. a liability decreases and an expense decreases.\nb. an…

when an adjustment is made for prepaid rent: \n\na. a liability decreases and an expense decreases.\nb. an asset increases and an expense decreases.\nc. an asset decreases and an expense increases.\nd. one asset increases and another decreases.

when an adjustment is made for prepaid rent: \n\na. a liability decreases and an expense decreases.\nb. an asset increases and an expense decreases.\nc. an asset decreases and an expense increases.\nd. one asset increases and another decreases.

Answer

Brief Explanations:

Prepaid rent is an asset. When an adjustment is made for prepaid rent, the portion of prepaid rent that has expired is recognized as rent - expense. This means the prepaid rent (asset) decreases and rent - expense increases.

Answer:

C. an asset decreases and an expense increases.