On September 1, 2017, Black Corporation Received $36,000 Cash from a Tenant

question 30

Multiple Choice

On September 1, 2017, Black Corporation received $36,000 cash from a tenant for one year's rent in advance, and recorded the transaction with a credit to Rent Revenue.The December 31, 2017 required adjusting entry in connection with this would be

• A)debit Rent Revenue and credit Unearned Rent, $12,000.
• B)debit Rent Revenue and credit Unearned Rent, $24,000.
• C)debit Unearned Rent and credit Rent Revenue, $12,000.
• D)debit Cash and credit Unearned Rent, $6,000.

Explain how specialization and exchange can lead to increased economic efficiency.

Analyze how the distribution of income and the concept of fairness play a role in economic discussions.

Understand how opportunity costs vary among nations and the factors contributing to these differences.

Understand the principle of the law of comparative advantage.

---

Definitions:

Laissez-Faire Economy

an economic system with minimal government intervention, where transactions are dictated by private parties.

Central Direction

The control of economic or organizational activity by a central authority or government.

Past Income

The amount of money earned in preceding periods, often used to assess financial stability or creditworthiness.

Inheritance

Assets received from someone who has died, transferring wealth or obligations from the deceased to their legal heirs or beneficiaries.