Which of the following statements is correct? a. prepaid expenses are decreased with a debit. b. unearned revenue is increased with a debit. c. rent expense is increased with a credit. d. accounts payable is increased with a credit.

D. Accounts Payable is increased with a credit.

Explanation:

Prepaid Expenses is an asset account, increased with a debit and decreased with a credit. Therefore, (A) is incorrect.

Unearned Revenue is a liability account, increased with a credit and decreased with a debit. Therefore, (B) is incorrect.

Rent Expense is an expense account, increased with a debit and decreased with a credit. Therefore, (C) is incorrect.

Accounts Payable is a liability account, increased with a credit and decreased with a debit. Therefore, (D) is correct.

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