What Is the Effect on the Accounting Equation When a Company

question 71

Multiple Choice

What is the effect on the accounting equation when a company recognizes rent as earned that had previously been received in advance from customers?

• A) Assets increase
• B) Assets decrease
• C) Liabilities increase
• D) Equity increases

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Definitions:

Balkans Crisis

A sequence of political and military events in the early 20th century that escalated tensions among the Great Powers and contributed to the outbreak of World War I.

Adriatic

A body of water separating the Italian Peninsula from the Balkan Peninsula, and the Adriatic Sea is known for its deep blue waters and historic coastal communities.

Francis Ferdinand

Archduke of Austria-Este whose assassination in Sarajevo in 1914 sparked the beginning of World War I.

Serbian Nationalist

A supporter of Serbian nationalism, aiming at promoting the cultural, political, or territorial interests of Serbs, often significant in the context of Balkan history.