Azure Company would record its rent bill for the month, which amounts to $920, as a(n):

Question

Quizplus · Accepted Answer

Rent is an expense incurred by the company, so the transaction would be recorded as an increase in expenses. Option A is incorrect because there is no increase in cash, only a decrease when the bill is paid. Option B is incorrect because accounts payable would actually increase when the company receives the bill and has not yet paid it. Option D is incorrect because drawing relates to the withdrawal of funds by the owner, which is not relevant to recording the rent expense.

Azure Company Would Record Its Rent Bill for the Month