Concept:Rent owed is an outstanding expense, so it is a liability.
Explanation:Rent owed means rent has not yet been paid by the business.
It is an outstanding expense, which is payable in the future.
In accounting, unpaid expenses are treated as current liabilities.
A department is not a separate legal entity from the business.
Therefore, any liability of a department is also a liability of the whole business.
Thus, rent owed by a department appears in the balance sheet as a liability of the business.
Answer:C. liability of the business