On September 1, 2019, Two Sisters Company Pays $36,000 Cash

question 154

Multiple Choice

On September 1, 2019, Two Sisters Company pays $36,000 cash for six months rent. The balance in prepaid rent on December 31, 2019, after adjustment, would be:

• A)$6,000.
• B)$24,000.
• C)$12,000.
• D)$0.

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Definitions:

Agent

A person authorized to act on behalf of another person or entity, known as the principal, in business dealings or other matters.

Liable

Liable describes the state of being legally responsible for something, especially in terms of owing compensation or facing legal consequences for one's actions or inactions.

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, excluding breaches of contract and equitable relief claims, potentially resulting in damages awarded to the injured party.

Scope Of Employment

The range of activities considered part of an employee's job duties and responsibilities for which the employer is legally responsible.