Is rent revenue a debit or credit?
Understand the Problem
The question is asking whether rent revenue is recorded as a debit or a credit in accounting. This relates to how revenue is recognized in financial records, typically classified under double-entry bookkeeping.
Answer
Credit
Rent Revenue is a credit.
Answer for screen readers
Rent Revenue is a credit.
More Information
In accounting, rent revenue is an income earned, and income accounts are generally credited to indicate an increase. Credits generally increase revenue, equity, and liability accounts.
Tips
A common mistake is confusing rent expense (which is a debit) with rent revenue (which is a credit). Remember, expenses are debited because they decrease equity, while revenues are credited because they increase equity.
Sources
- For the following account, determine whether the account increases with a debit or a credit: Rent Revenue - homework.study.com
- Why is rent expense a debit and service revenues a credit? - Quora - quora.com
- Types of Revenue Accounts | Revenue Examples in Business - patriotsoftware.com
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