Multiple choice

The journal entry to record “payment of rent” will include

  1. dr. rent cr. cash

  2. dr. cash cr. expenses

  3. dr. expenses cr. creditors

  4. dr. rent cr. expenses
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When paying rent, rent expense increases (debit) and cash decreases (credit). Option B incorrectly debits cash when cash should decrease. Option C incorrectly credits creditors when rent isn't a creditor transaction. Option D incorrectly credits expenses instead of cash.

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