做对了，但又有点疑惑提前付租金为什么不是现金和应付款同时减少

问题如下：

When a company pays its rent in advance, its balance sheet will reflect a reduction in:

选项：

A.

assets and liabilities.

B.

assets and shareholders’ equity.

C.

one category of assets and an increase in another.

解释：

C is correct.

Paying rent in advance will reduce cash and increase prepaid expenses, both of which are assets.

解析：提前付的租金属于prepaid expense，是资产项，所以资产一增一减，增加的是prepaid expense，减少的是cash。