Paying rent for the premises causes which of the following to occur?
A)Increases expenses and decreases cash
B)Increases expenses and increases accounts payable
C)Decreases revenue and decreases cash
D)Decreases revenue and increases accounts payable

Question

Quizplus · Accepted Answer

Paying rent for the premises is an expense, which means it reduces cash and increases expenses. Therefore, choice A is the best answer. Choices B, C, and D describe effects that do not correspond to paying rent for the premises.

Paying Rent for the Premises Causes Which of the Following