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:

Devaluing

Reducing or underestimating the importance, value, or worth of something or someone.

Ineffective Communication

The unsuccessful exchange of information between individuals, resulting in misunderstandings or failure to convey messages accurately.

False Hope

Providing optimism or encouragement about an outcome that is unlikely to happen, often without evidence or basis in reality.

Avoid

Refers to deliberately staying away from or preventing something.