Question

Outstanding rent is : (a) Asset (b) Liability (c) Income (d) Expense

Answer 1

Answer:

outstanding rent is liability because outstanding means it yet to be paid

Answer 2

Outstanding rent is : (a) Asset (b) Liability (c) Income (d) Expense

Answer: (b) Liability

Extra Information:

Outstanding expenses : The incurred expenses which are not paid during the year are called outstanding expenses.

[For example: Outstanding Rent, Outstanding salary etc.]

Outstanding expenses are included in respective expenses A/c on Trading account/Profit & Loss account.

In simpler words, the expenses taking place during the current accounting period where the payment is not made are called outstanding expenses.

And so, treating outstanding rent is considered as a liability, it is to be shown on liability side of Balance sheet.