Yes normally rent is fixed expense and need to be paid even there is no production at all.
A fixed expense is an expense that doesn't change, regardless of the activity level. For most companies, rent expense is fixed. No matter what the company's sales volume, rent expense stays the same.
An example of a fixed cost for catering would include rent; utilities, equipment and insurance.
Rent expenses are generally termed Fixed expenses rather than variable expenses. It is fixed because it is consistent of a term and cannot be adjusted if revenues change.
rent is an expense while outstanding rent is a liability
Rent expense has a debit balance as a normal balance so increase in rent will be shown by debit to rent expense.
Rent food car payment electric bill
A fixed expense is an expense that doesn't change, regardless of the activity level. For most companies, rent expense is fixed. No matter what the company's sales volume, rent expense stays the same.
An example of a fixed cost for catering would include rent; utilities, equipment and insurance.
A fixed expense is a cost or overhead that remains the same each week, fortnight, month, quarter or year. An example of a fixed cost would be rent or a fixed mortgage repayment.
An example of a fixed cost for catering would include rent; utilities, equipment and insurance.
Rent expenses are generally termed Fixed expenses rather than variable expenses. It is fixed because it is consistent of a term and cannot be adjusted if revenues change.
Only if the policy goes unchanged and the amount goes unchanged for the period of time that you're assessing the fixed expense for. A fixed expense is an amount that is payable, and that is the same amount each period. So if your health insurance policy is always $25 per week, than yes. But you must take into account that sometimes insurance companies increase rates, or your health insurance needs change as you get older, have a partner, have kids etc. I would only ever consider it a short term fixed expense. In business a fixed expense is generally that of overheads, such as rent etc.
rent is an expense while outstanding rent is a liability
Rent expense is a Revenue expense and not a capital expense. It is a revenue expense because it recurs from year to year and is not an expense in purchasing a fixed asset. It is classified as a revenue expense also because it features in the income statement of each year and following the principle of accruals, the accountant must, make the necessary end of period adjustments to make sure that the the amount of rent expense that should have paid is charged against revenue and not just the actual cash paid.
An expected expense in a budget that remains constant is called a fixed expense. This means the cost stays the same each month, such as rent or a car payment.
Rent expense has a debit balance as a normal balance so increase in rent will be shown by debit to rent expense.
Expense is any cost that the firm incurs to earn the particular revenue. Most expense are required to be paid except for a few "non-cash expense" such as depreciation. Prepaid, as suggested, are expenses paid in advance but have not yet "used" to generate revenue. It is to be used at a later date. One example of a prepaid expense would be rent i.e. prepaid rent. The owner pays the rent for the next 2 months at $100 per month. Prepaid rent = $200.