Tim Received $3,000 in Advance for Renting Part of His

question 19

Multiple Choice

Tim received $3,000 in advance for renting part of his building for 4 months. What is the entry to record the adjustment after one month has passed?

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

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Definitions:

Gross Domestic Product

The aggregate economic or market value of all products and services that have been completed inside a country's boundaries during a specific timeframe.

Interest Rate

The amount charged, expressed as a percentage, by a lender to a borrower for the use of assets over a specific period of time.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit in the future.

Money Supply

The overall financial resources quantity in an economy at a specified time.