Rent owed by a department is treated in the Balance sheet as
Answer Details
Rent owed by a department is treated in the Balance sheet as a liability of the business. This is because the rent owed by the department is a debt or obligation that the business owes to its landlord, and it represents a future outflow of economic resources. Therefore, it is classified as a liability, which is a type of obligation that the business has to pay in the future. On the other hand, an asset is a resource that is expected to provide future economic benefits to the business.