Question

How outstanding rent is treatment under accounting equation?

Answer 1

It proceeds by repeatedly asking "can the cost of this item or step be reduced or eliminated, without diminishing the effectiveness, required quality, or customer satisfaction?" Also called value engineering, its objectives are to distinguish between the incurred costs (actual use of resources) and the costs inherent (locked in) in a particular design (and which determine the incurring costs), and to minimize the locked-in costs.

Answer 2

Answer:

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Accounting equation

• ➻ Assets = liability + capital

Treatment of rent outstanding

• ➻ Increase in rent outstanding (liabilities)
• ➻ Decrease in capital  
• ➻ As rent is expense its deducted from capital  and
• ➻ rent outstanding is added in liabilities