Robertson Company paid $1,850 cash for rent expense.As a result of this business event,

Question

Quizplus · Accepted Answer

Paying cash for rent expense would decrease the total equity of the company since expenses are deducted from revenue to determine net income, which ultimately affects the equity of the company. Additionally, paying cash for rent expense would decrease the net cash flow from operating activities since it represents an outflow of cash from the company's operating activities.

Robertson Company Paid $1,850 Cash for Rent Expense