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Is rent a liability for individuals or businesses?
Yes, rent is considered a liability for both individuals and businesses because it represents an obligation to pay for the use of property or space over a specific period of time.
Is the loan you take to buy the business considered a liability and equity?
The loan is considered a liability - The value of the company is the equity.
What is the journal entry of rent received in advance?
Debit Cash for the cash received, and credit a liability account you can call Prepaid Rent or Prepaid Deposits. Basically, you credit a liability account because you "owe" them the rent for the month they have paid for in advance. Once the month has passed, you can debit the Prepaid Rent and credit Rental Income. Or, if the prepaid rent is a deposit made, you just keep it on your books as a liability until the end of their lease, at which time they will either be refunded the deposit (debit Prepaid Rent, credit Cash) or if they don't pay their last month's rent you can use the deposit (debit Prepaid Rent, credit Rental Income).
Is receiving payment for my rent considered as income?
Yes, receiving payment for your rent is considered as income.
Is accounts payable considered an asset or a liability on a company's balance sheet?
Accounts payable is considered a liability on a company's balance sheet.
