Which of the Following Records the Payment of the Current

question 56

Multiple Choice

Which of the following records the payment of the current month's rent bill for a business?

• A)debit to cash and a credit to rent expense
• B)debit to rent expense and a credit to cash
• C)debit to rent expense and a credit to accounts payable
• D)debit to accounts payable and a credit to cash

---

Definitions:

Absorption Costing

A costing method that includes all manufacturing costs, direct materials, direct labor, and both variable and fixed manufacturing overhead, in the cost of a product.

Cost Structure

The relative proportion of fixed, variable, and mixed costs in an organization.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and manufacturing overhead.

Common Fixed Expenses

Expenses that remain constant in total amount and are not affected by changes in business activity level, shared across multiple business segments or products.