At the Start of This Year 18 Months of Rent

question 47

Multiple Choice

At the start of this year 18 months of rent was paid. At the year's end, how will this affect the balance sheet?

• A) Assets will be decreased.
• B) Liabilities will be increased.
• C) Owner's Equity will be increased.
• D) Net Income will be increased.

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Definitions:

Salaries Expense

Represents the total amount paid to employees for services rendered during a particular period.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is globally accepted for financial reporting.

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of accounting standards used to prepare and report financial statements.

Fair Value

The market-based measurement of the value of an asset or liability, used for financial reporting purposes.