Sam Received $8,000 in Advance for Renting Part of His

question 46

Multiple Choice

Sam received $8,000 in advance for renting part of his building. What is the entry to record the receipt?

• A) Debit Cash; credit Rent Expense
• B) Debit Cash; credit Prepaid Rent Expense
• C) Debit Cash; credit Unearned Rent Revenue
• D) Debit Cash; credit Rental Income

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Definitions:

Risk Averse

The preference for certainty over uncertainty, with individuals or entities avoiding risks when making decisions.

Interest Rates

The cost of borrowing money, expressed as a percentage of the total amount loaned, or the return on invested money.

Efficient Markets Hypothesis

A theory that suggests financial markets are informationally efficient, meaning prices of traded assets reflect all available information at any given time.

Interest Rates

The cost of borrowing money or the return on investment for savings, often expressed as a percentage.