Is rent expense an asset, liability, or equity?
Understand the Problem
The question is asking whether rent expense should be classified as an asset, liability, or equity in accounting terms. To address this, we will clarify what rent expense represents in financial statements.
Answer
Expense
The final answer is Rent Expense is classified as an expense.
Answer for screen readers
The final answer is Rent Expense is classified as an expense.
More Information
Rent expense is categorized as an expense in financial accounting. The normal balance of an expense account is typically a debit.
Tips
A common mistake is confusing rent expense with rent payable. Rent expense is recognized when it is incurred, while rent payable is a liability for unpaid rent.
Sources
- Is the Rent Expense account classified as an asset, a liability, an ... - homework.study.com
- Is Rent A liabilities or expense? - Quora - quora.com
- Account Types | Financial Accounting - Courses.lumenlearning.com - courses.lumenlearning.com
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