The owner of a business paid the rent with cash. This payment reduces Cash as well as increases the Expenses of the firm.

Name: The owner of a business paid the rent with cash. This payment reduces Cash as well as increases the Expenses of the firm.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Paying rent with cash decreases the Cash account (an asset) and increases the Expenses on the income statement, reflecting the cost of using the property for the period.

The Owner of a Business Paid the Rent with Cash