Saturn, Inc. paid the rent for the current month in cash. Which of the following accounts will be used to record the transaction?

Question

Quizplus · Accepted Answer

The transaction of paying rent in cash is an expense for the company, and therefore should be recorded in the Rent Expense account. Prepaid Rent would be used if the company paid rent in advance, Rent Payable would be used if the company owed rent to be paid in the future, and Rent Revenue would be used if the company was receiving rent from a tenant.