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When prepaid rent is recognized as an expense, which of the following is true? a) Prepaid rent decrease, rent expense on the income statement increases

When prepaid rent is recognized as an expense, which of the following is true?

a) Prepaid rent decrease, rent expense on the income statement increases and equity increases

b) Cash decreases and equity decreases

c) Prepaid rent decrease, rent expense on the balance sheet increases and equity decreases

d) Prepaid rent decrease, rent expense on the income statement increases and equity decreases

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