The financial accounting element that best describes a payment of rental expense for the company's offices for the operations during the year is
A) Assets
B) Liability
C) Distribution to owners
D) Expense
E) Revenue

Question

Quizplus · Accepted Answer

Rental expense is an operating expense, representing an outflow of economic resources incurred in generating revenue. Hence, it is classified as an expense in the income statement.

The Financial Accounting Element That Best Describes a Payment of Rental