Is rent expense a debit or a credit?

Understand the Problem

The question is asking whether rent expense should be recorded as a debit or a credit in accounting. Typically, expenses increase with debits, so the answer will clarify this principle.

More Information

Rent expense is typically recorded as a debit because it represents an outflow of resources, which decreases the company's equity.

Tips

A common mistake is to record rent expense as a credit, which would incorrectly increase the funds or reduce liabilities instead of depicting a reduction in assets.

Sources

• Rent Expense Classification - Accounting Coach - accountingcoach.com
• Understanding Rent Expense - Investopedia - investopedia.com
• Basics of Rent Expense - Corporate Finance Institute - corporatefinanceinstitute.com