Which of the following is the normal balance of a rent expense account?
Correct answer: B. Debit balanceCompare Personal Loans
- A. Credit balance
- B. Debit balanceCompare Personal Loans
- C. Overdraft
- D. Cash balance
Explanation
Rent is an expense, and expenses normally increase on the debit side under the rules of double-entry bookkeeping. Therefore, a rent expense account normally has a debit balance.
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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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