Question

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets E. Current liabilities

B. Long-term investments F. Long-term liabilities

C. Plant assets G. Equity

D. Intangible assets

11. Rent receivable

Short answer

The correct answer isA, Current assets.

Step-by-step solution

Definition of Rent

The amount earned or paid for using someone else assets are known as rent of the asset. Rent is the revenue for the owner of the asset while expense for the user of the asset.

Reason for choice

Rent is generally receivable within one accounting period, so it should be reported under the current asset section of the balance sheet. If the rent is receivable generally after one accounting period, then it should be reported as the long-term asset in the balance sheet.