A New Company Signed a Lease for Office Space During

question 36

Multiple Choice

A new company signed a lease for office space during their first month of business. At that time they paid a total of $12,000 for first and last months' rent. At the end of the first month, the effect on the financial statements would be

• A) $12,000 rent expense.
• B) $6,000 rent expense and $6,000 prepaid rent on the Statement of Financial Position.
• C) $12,000 prepaid rent on the Statement of Financial Position.
• D) Nothing recorded because the company has not made any sales yet.

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Definitions:

Transmission Switch

A device within a vehicle's transmission system that controls various functions based on the vehicle's gear position.

Transmission Sensor

A device monitoring the operation of a vehicle's transmission, providing feedback to ensure efficient performance.

Manual Transmission

A type of transmission in vehicles requiring the driver to manually shift gear ratios while driving, offering more control over the vehicle's power and performance compared to automatic transmissions.

Transfer Shaft

A shaft that transfers rotational power from one part of a mechanism, often in vehicles from the transmission to the differential.