If a Business Pays Rent in Advance and Debits a Prepaid

question 147

Multiple Choice

If a business pays rent in advance and debits a Prepaid Rent account, the company receiving the rent payment will credit:

• A)cash.
• B)prepaid rent.
• C)unearned rent revenue.
• D)accrued rent revenue.

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Definitions:

Poverty Rate

The percentage of the population living below the national poverty line, indicating the proportion of individuals with insufficient income to meet basic needs.

Welfare

Government programs designed to support the well-being of its citizens, especially those in financial or social need.

Poverty Line

A set monetary threshold, differing by country, below which an individual is considered to be living in poverty.

Poverty Rate

A measure indicating the proportion of the population whose income falls below the threshold considered necessary to meet basic living expenses.