The Oliver Construction Company Received $18,000 for Six Months Rental

question 61

Multiple Choice

The Oliver Construction Company received $18,000 for six months rental income in advance on November 1, 2015, and credited the Rental Revenue account. The required adjusting entry on December 31, 2015, would include a

• A) credit to Rental Revenue for $6,000
• B) debit to Rental Revenue for $12,000
• C) credit to Rental Receivable for $12,000
• D) debit to Rental Revenue for $6,000

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, calculated by discounting future cash flows to their present value and subtracting the initial investment.

IRR

Internal Rate of Return; a metric used in capital budgeting to estimate the profitability of potential investments.

MIRR

Modified Internal Rate of Return, a measure used in capital budgeting to estimate the profitability of potential investments.

NPV

Net Present Value, a calculation used to determine the present value of an investment's cash inflows and outflows over time.