On September 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the end-of-period spreadsheet would

A) increase an expense account
B) decrease a liability account
C) increase an asset account
D) decrease an expense account

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Asset Account

An account on a company's balance sheet representing resources owned by or owed to the company that have economic value.

Expense Account

An account used to record expenses in accounting, representing money spent or costs incurred in an entity's operations to generate revenues.