Accrued rent liability definition
/What is Accrued Rent Liability?
Accrued rent liability is a balance sheet account that stores the amount of rent incurred but not yet paid. This account is used by a tenant that has entered into a facility rental arrangement with a landlord.
Classification of Accrued Rent Liability
The liability is usually included in the accrued liabilities account, along with all other accruals . However, if the accrued rent amount is large enough, management might want to record it in a separate account. The latter situation arises when the rent expense comprises a substantial proportion of the total expenses incurred by the renter.
