Payment of rent expenses is recorded on which side of cash book?
Correct answer: B. Payments
- A. Receipts
- B. Payments
- C. Income
- D. Expense
Explanation
Rent paid causes cash to leave the business, so it is recorded on the payments side of the cash book. The expense account is debited separately in the double-entry records.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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