Pepperdine Company paid factory rent of $10,000. At the time this transaction occurred, it did not affect total assets or net income. True or false?

Question

Antonio Harmon

Business

1 December, 14:21

Pepperdine Company paid factory rent of $10,000. At the time this transaction occurred, it did not affect total assets or net income. True or false?

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Answers (1)

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Austin Spencer · Answer 1

True

Explanation:

As at the time factory rent was paid by Pepperdine company, it did notaffect toatal assets as the factory is an asset of he company as it is rented. I also doesn't affect the net income since the rent is going to included in capital for the company.

Cheers.