The Unearned Rent Account Has a Balance of $72,000

question 19

Multiple Choice

The unearned rent account has a balance of $72,000. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is

• A) $18,000
• B) $90,000
• C) $54,000
• D) $36,000

---

Definitions:

Concentration Ratio

A measure used in economics to assess the level of competition in an industry by calculating the market share of the largest firms.

Internet Search Industry

A sector of the economy that involves companies which provide technologies and services for searching information on the Internet.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a targeted audience.

Elasticity

A determination of how the need or provision of a product varies in reaction to changes in its price.