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:

Unconsciousness

A state where a person is unable to respond to stimuli and lacks awareness of their surroundings.

Influence on Personality

The impact that environmental, genetic, and social factors have on the development of an individual's character traits and behavior.

Libido

In psychoanalytic theory, the energy derived from sexual instincts that drives or motivates an individual's behaviors.

Learned Behaviors

Behaviors acquired through interaction with the environment and through the process of conditioning, as opposed to being innate.