If rent is paid monthly on medical equipment, would that be rent payable or accounts payable?
submitted by t-accounts

kaswuertehan

Hmm, I think if the rent is for the equipment and you haven't paid it yet, it's probably accounts payable. But if you've already paid, then it's just a regular expense. So, depends on whether it's paid or not.

jb_putter

Since the rent is paid monthly for the equipment, it would probably be classified as accounts payable, since the payment is due but not yet settled when you're reporting.

If you've already paid it, then it's just a cash outflow. But if it's an expense incurred but not paid yet, then accounts payable is appropriate.