REM Real Estate Received a Check for $27,000 on July

question 192

Multiple Choice

REM Real Estate received a check for $27,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $27,000. Financial statements will be prepared on July 31. REM Real Estate should make the following adjusting entry on July 31:

• A) Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, $4,500.
• B) Debit Rent Revenue, $4,500; Credit Unearned Rent Revenue, $4,500.
• C) Debit Unearned Rent Revenue, $27,000; Credit Rent Revenue, $24,000.
• D) Debit Cash, $27,000; Credit Rent Revenue, $27,000.

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Definitions:

Non-Financial Performance

Non-financial performance encompasses the qualitative aspects of a business's operations and success, such as customer satisfaction, employee morale, and brand reputation, which are not directly measured in monetary terms.

Critical Success Factors

The essential elements or conditions required for ensuring the success of an organization or a project.

Financial Performance Measures

Metrics used to assess a company's financial health and operational efficiency, such as net income, return on investment, and earnings per share.

Lag Indicators

Metrics that reflect the results of actions already taken, providing insight into performance after the fact.