On November 1, Call Center Received $4,800 for Two Years

question 52

Multiple Choice

On November 1, Call Center received $4,800 for two years' rent in advance from Garrett Company. The November 30 adjusting entry that Call Center should make is to:

• A) debit Rental Income; credit Unearned Rent $4,800.
• B) debit Cash; credit Rental Income $4,800.
• C) debit Unearned Rent; credit Rental Income $200.
• D) debit Unearned Rent; credit Rent Expense $200.

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Definitions:

Hostile Takeovers

Hostile takeovers occur when a company acquires another company against the wishes of the target company's management and board of directors.

WACC

Weighted Average Cost of Capital, or WACC, is a financial metric that calculates the cost of capital for a business, weighting each capital segment according to its relative proportion.

Discount Rate

This is the interest rate applied in calculating the present value of cash flows that are expected in the future, using the discounted cash flow approach.

Valuation Purposes

The process of determining the present worth of an asset or a company, often for investment analysis, buying or selling.