Question 20
Accruals and PrepaymentsRent receivable accrued 1/01/2005 D3,000
Rent received during the year 2005 D5,000
Rent receivable accrued 31/12/2005 D2,500
The rent receivable accrued as at 31st December 2005 is shown in the balance sheet as
- A.current asset
- B.current liability
- C.long-term liability
- D.fixed asset.
Show the answer and explanation
Answer: A (current asset)
Explanation
Rent still to be received is owed to the business, a current asset.