Joe Received $4,000 in Advance for Renting Part of His

question 112

Multiple Choice

Joe received $4,000 in advance for renting part of his building for 4 months. What is the entry to record the adjustment after one month has passed?

• A) Debit Cash $1,000; credit Rental Income $1,000
• B) Debit Cash $4,000; credit Rental Income $4,000
• C) Debit Unearned Rent $1,000, credit Rental Income $1,000
• D) Debit Unearned Rent $4,000, credit Rental Income $4,000

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Definitions:

Government Spending

Expenditures by government bodies on goods and services that influence the economy's overall activity.

Recessionary Gap

A situation in macroeconomics when an economy operates below its full-employment equilibrium, leading to a gap in output.

Government Spending

The total amount of public expenditure by government entities on goods, services, and public projects.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers, such as unemployment insurance and progressive taxation.