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IIA Exam CPEA Topic 1 Question 67 Discussion

Actual exam question for IIA's CPEA exam
Question #: 67
Topic #: 1
[All CPEA Questions]

A business incurring costs for rent accrued at a balance sheet date on space the business occupies should most properly list the rent cost on the business's balance sheet as which one of the following?

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Suggested Answer: B

by Blair at Dec 14, 2023, 11:47 AM

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Maira
2 months ago
Rent on the balance sheet, huh? Man, I'm in the wrong business. Maybe I should've majored in accounting instead of comedy. At least then I'd know where to put all my unpaid bills!
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Julianna
1 months ago
C: I never knew that! Accounting can be pretty interesting.
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Delila
1 months ago
B: Yeah, that's right. It's considered a prepaid expense until it's actually used up.
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Ma
1 months ago
A: C) prepaid expenses
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Loreta
2 months ago
D, definitely D. I'm not falling for those sneaky asset options. Rent's a cost, and if it's accrued, it's gotta be a liability. Simple as that!
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Doretha
3 months ago
Hold up, isn't rent supposed to be paid in advance? This question's playing tricks on me. But I think D is the right answer. Gotta keep those liabilities in check, am I right?
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Stevie
1 months ago
Yeah, D makes sense. We need to be careful with how we categorize our expenses on the balance sheet.
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Xochitl
1 months ago
I agree, D is the correct answer. We need to make sure we accurately reflect our financial obligations.
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Jaime
2 months ago
I think you're right, D seems like the best choice. We need to keep track of our liabilities.
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Rosio
3 months ago
Hmm, tricky one. I was tempted to go with C, prepaid expenses, but then I remembered that accrued rent is a liability, not a prepaid asset. Gotta love those accounting technicalities!
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Jonelle
1 months ago
C: Yeah, it can get confusing with accounting terms sometimes.
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Alease
2 months ago
B: Oh, I see. Thanks for clarifying that!
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Kristeen
2 months ago
A: The correct answer is D) current liabilities.
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Vi
3 months ago
Aha! The answer is clearly D. Current liabilities. Rent accrued at the balance sheet date is a liability, not an asset or deferred income. Easy peasy!
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Tamekia
2 months ago
Yes, it should be listed as a current liability on the balance sheet.
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Craig
3 months ago
I agree, rent accrued is definitely a liability.
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Dana
3 months ago
No, it's actually listed as current liabilities.
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Emilio
3 months ago
I think it should be listed as prepaid expenses.
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Paulina
3 months ago
I'm not sure, but I think it could also be considered as current liabilities since it's a cost that needs to be paid in the future.
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Andree
3 months ago
I agree with Phuong, listing it as prepaid expenses makes sense because the rent has already been paid for but not yet used.
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Phuong
4 months ago
I think the rent cost should be listed as prepaid expenses.
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