Question

The rent expense account of Brownstone Company is?

1) An asset account
2) A liability account
3) An equity account
4) An expense account

Answer 1

The rent expense account of Brownstone Company is an expense account, which reflects the cost of renting property for business operations and is recorded on the income statement.

Step-by-step explanation:

The rent expense account of Brownstone Company is an expense account. In accounting, expenses are outflows of money or other valuable assets from a company incurred to generate revenue. Rent expense is specifically the cost associated with renting a space or property for business operations.

Thus, the correct answer to the question is option (4): An expense account. The rent expense does not represent an asset, liability, or equity of the company. Instead, it is recorded on the income statement and impacts the net income of the company, reflecting the cost of using the rental property during a specific accounting period.