If a Company Receives the Rent for January 2011 from a Tenant

question 88

Multiple Choice

If a company receives the rent for January 2011 from a tenant in December 2010, this will be reported as:

• A) revenue in 2010.
• B) an expense in 2010.
• C) a liability in 2010.
• D) stockholders' equity in 2010.

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Definitions:

Merchantable Food

Food products that meet the minimum quality standards set by law, making them fit for sale or consumption.

Fit to Eat

Safe and suitable for consumption as food without posing any health risk.

Reasonable Expectations

The anticipation of benefits, actions, or conditions based on what an ordinary person would consider fair under specific circumstances.

Inconsistent Warranties

Situations where the guarantees or assurances provided on products or services conflict with each other.