What type of account is rent revenue?

What type of account is rent revenue?

Rent Revenue is the title of an income statement account which (under the accrual basis of accounting) indicates the amount of rent that has been earned during the period of time indicated in the heading of the income statement. The account Rent Revenue is also known as Rental Income.

Why is rent revenue a credit?

Revenues cause owner’s equity to increase. Since the normal balance for owner’s equity is a credit balance, revenues must be recorded as a credit.

Is rent revenue an asset or revenue?

Rent Receivable is an asset account in the general ledger of a landlord which reports the amount of rent that has been earned but not received as of the date of the balance sheet.

Is rental revenue a current asset?

For accounting purposes, revenue is recorded on the income statement rather than on the balance sheet with other assets. Revenue is used to invest in other assets, pay off liabilities, and pay dividends to shareholders. Therefore, revenue itself is not an asset.

Is rent asset or liability?

Outstanding rent is considered as current liability in accounting. Therefore, it is not an asset.