Which of the Following Would Be the Effect of a Transaction

question 45

Multiple Choice

Which of the following would be the effect of a transaction to expense prepaid rent for the period?

• A) increase Prepaid Rent, decrease Rent Expense
• B) increase Rent Expense, decrease Cash
• C) increase Prepaid Rent, decrease Cash
• D) increase Rent Expense, decrease Prepaid Rent

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Definitions:

Life Insurance

Life insurance is a contract between an insurer and a policy holder designed to pay a designated beneficiary a sum of money upon the death of the insured person, offering financial protection to beneficiaries.

Death Benefit

A sum of money paid to a beneficiary upon the death of the insured person.

Breach Of Warranty

The violation of a promise, claim, or guarantee about the condition or quality of a product or service.

Insurer's Duty

The obligations and standards of conduct expected from an insurance company, including acting in good faith and handling claims fairly.