Which of the following is an example of an expense account?

• A. Rent Expense
• B. Owner's Capital
• C. Service Revenue
• D. Accounts Receivable

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of an expense account. An expense account is used to record costs incurred by a business during its operations, such as rent, utilities, salaries, and other operational expenses.
2. Step 2: Analyze the options provided in the question. Identify which of the accounts listed represents a cost or expenditure for the business.
3. Step 3: Evaluate 'Rent Expense' as an example of an expense account. Rent Expense is a cost incurred for using a property or space, making it a clear example of an expense account.
4. Step 4: Review the other options: 'Owner's Capital' represents the owner's equity, 'Service Revenue' represents income earned by the business, and 'Accounts Receivable' represents money owed to the business by customers. None of these are expense accounts.
5. Step 5: Conclude that 'Rent Expense' is the correct example of an expense account, as it directly reflects a cost incurred by the business.