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.

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