If a company made the following journal entry: $\begin{array} { l }
\text {Dr. Rent expense (SE) }&xx\ \text {Cr. Cash (A) }&&xx\
\end{array}$

What type of lease do they have?
A)Capital lease
B)Finance lease
C)Operating lease
D)Sales-type lease

Question

If a company made the following journal entry: $\begin{array} { l  }
 \text {Dr. Rent expense (SE) }&xx\ \text {Cr. Cash (A) }&&xx\
\end{array}$

What type of lease do they have?
A)Capital lease
B)Finance lease
C)Operating lease
D)Sales-type lease

Quizplus · Accepted Answer

The journal entry indicates an expense (Rent expense) being recorded simultaneously with a reduction in an asset (Cash), which is characteristic of an operating lease. In operating leases, lease payments are typically expensed as incurred.

If a Company Made the Following Journal Entry Dr. Rent expense (SE) xxCr. Cash (A) xx\begin{array} { l } \text {Dr. Rent expense (SE) }&xx\\ \text {Cr. Cash (A) }&&xx\\\end{array}Dr. Rent expense (SE) Cr. Cash (A) ​xx​xx​

If a Company Made the Following Journal Entry $\begin{array} { l } \text {Dr. Rent expense (SE) }&xx\\ \text {Cr. Cash (A) }&&xx\\\end{array}$