Which of the Following Would Be Considered a Secondary Effect

question 24

Multiple Choice

Which of the following would be considered a secondary effect of rent control.

• A)a reduction if the number of rental units that are available to rent
• B)an increase in the number of rental units that people would like to rent
• C)a shortage of rental units in the market
• D)the deterioration in the quality of rental units
• E)an increase in the difficulty of finding a rental unit at the rent control price

Recognize the relationship between journal entries, adjusting entries, and their impact on income statement and balance sheet accounts.

Understand how to prepare adjusting entries for prepaid expenses.

Comprehend the adjustment process for unearned revenues.

Understand how to calculate and record depreciation expense using the straight-line method.

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Definitions:

Ordinary Annuity

A series of equal payments made at regular intervals, such as monthly or annually, with the payments occurring at the end of each period.

Investment Account

A financial account held by an investment dealer that enables individuals to purchase securities such as stocks, bonds, and mutual funds.

Annually

Happening annually.

EAR

The Effective Annual Rate, a measurement of interest that takes into account the effect of compounding over the period of time it is applied.