Question

What transaction is represented by the entries: Debit rent, Credit landlord?

A The receipt of rental income by the business
B The issue of an invoice for rent to a tenant
C The receipt of an invoice for rent payable by the business
D The payment of rent by the business

Answer 1

The accounting entries 'Debit rent, Credit landlord' denote the payment of rent by the business, increasing rent expense and decreasing cash or accounts payable.

Step-by-step explanation:

The transaction represented by the entries: Debit rent, Credit landlord is the payment of rent by the business. This accounting entry reflects an expense for the business, where rent is the cost being incurred, and the landlord is the entity being paid. This journal entry increases the rent expense on the business's income statement and decreases the cash or payable account on the balance sheet.

The transaction represented by the entries: Debit rent, Credit landlord is option D: The payment of rent by the business.

The accounting entries 'Debit rent, Credit landlord' denote the payment of rent by the business, increasing rent expense and decreasing cash or accounts payable.