On June 1,Sidney Consulting Services Paid $18,000 for 12 Months

question 67

Multiple Choice

On June 1,Sidney Consulting Services paid $18,000 for 12 months of advance rent on its office building.Select the adjusting entry made on December 31,to record the amount of rent that had expired.

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Definitions:

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service versus the total amount they actually pay.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefit to society from the production and consumption of goods or services.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to a normal good.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from the production and consumption of goods and services.