When rent is paid in advance for 2 years, it is appropriately recorded as a(n) Blank 1 of 2, whereas when rent is paid and used during one month, it is appropriately recorded as a(n)

Asset; expense.

Explanation:

When rent is paid in advance for 2 years, it is appropriately recorded as an asset because it adds value, whereas when rent is paid and used during one month, it is appropriately recorded as an expense because it has been spent.

An asset can be defined as an resources owned and controlled by an individual or organization, which is capable of providing future economic benefits or has the potential to produce positive economic value. Assets can be used to generate revenue in the future or even in its present state depending on the choice of the owner.

On the other hand, an expense is a term used to describe money spent or cost incurred by an individual or organization.

answer; capital structure decision;