Under accrual accounting, rent expense for February, 2015 would be recognized on the income statement in February, 2015 even though it had been paid for in January.

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Under accrual accounting, expenses are recognized when they are incurred, not when they are paid. Therefore, the rent expense for February would be recognized in February, regardless of when it was paid.

Under Accrual Accounting, Rent Expense for February, 2015 Would Be