At the beginning of the financial year on 1 July, a business shows an accrual on the rent account of $600.
During the financial year, payments were made for rent as detailed below.
Which amount is to be shown as a prepayment or accrual for rent at the end of the financial year on 30 June?
1 )
$600 accrual
2 )
$600 prepayment
$900 accrual
4 )
$900 prepayment
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