Which of the following is TRUE regarding the accounts prepaid rent and rent expense?

A.Prepaid rent represents the cost of rent not yet paid for, while rent expense represents the cost of rent which has been paid for.

B.TThese account titles both mean the same thing and are used interchangeably.

C.Prepaid rent represents the cost of rent paid for but not yet used, while rent expense represents the cost of rent used to deliver goods or services to customers.

D.Rent expense represents an asset account, while prepaid rent represents the cost of rent used to deliver goods or services to customers.

Revenues have a normal [debit/credit] balance and [increase/decrease] Retained Earnings.

A.credit, decrease

B.credit, increase

C.debit, increase

D.debit, decreas

Caesar & Co. paid $1,000 cash for a twoyear insurance policy. The journal entry would require a:

A.debit to Prepaid Insurance and a credit to Cash.

B.debit to Insurance Expense and a credit to Accounts Payable.

C.debit to Insurance Expense and credit to Cash.

D.debit to Insurance Expense and a credit to Retained Earnings.