If the Prepaid Rent Account Had an Unadjusted Normal Balance

question 14

Multiple Choice

If the prepaid rent account had an unadjusted normal balance of $13,400, and an adjustment was made crediting the account for $1,800, then the account would appear on the worksheet as a(n) :

• A)$11,600 debit balance in the balance sheet columns.
• B)$1,800 credit balance in the income statement columns.
• C)$11,600 credit balance in the adjusted trial balance columns.
• D)$1,800 credit balance in the balance sheet columns.

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Definitions:

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is used in finance to gauge the amount of historical volatility of an investment.

Risk-Free Asset

An investment that is expected to return its principal and interest with near certainty, such as government bonds from stable countries.

Risky Asset

An investment that has a significant degree of uncertainty in its returns.

Asset Allocation

The process of spreading investments among various categories of assets (e.g., stocks, bonds, real estate) to optimize risk and return.