How is rent present in income statement and balance sheet



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Basics of Business Finance, Topic : Balance Sheet- Assets, Personal Balance Sheet; You mentioned Rent (below liabilities) in Balance sheet as well as in Income statement. Please explain?

1 Answer(s)


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Hi Purvaj, Good observation. The rent in the income statement indicates just the rent you have already paid for the previous financial period - month or quarter or year. The rent in the balance sheet indicates the rent you have to pay in the next financial period.

Is that clear?