On October 25, 2013 Quick Corp. prints a cheque for November's rent payment. Quick Corp. mails the cheque on October 27 to the landlord. The landlord receives the cheque October 31 and cashes the cheque on November 2. When should Quick Corp. record the rent expense associated with this transaction?

Question

Quizplus · Accepted Answer

Quick Corp. should record the rent expense in November when the rent is due and the benefit of the rent is received, following the accrual accounting principle.