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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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Vi
14 hours 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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Paulina
4 days 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
5 days 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
17 days ago
I think the rent cost should be listed as prepaid expenses.
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