What Effect Does Recognizing Revenue at the End of the Accounting

question 59

Multiple Choice

What effect does recognizing revenue at the end of the accounting period for rent previously received in advance have on the accounting equation for an insurance company?

• A)Stockholders' equity increases and liabilities increase.
• B)Assets increase and stockholders' equity increases.
• C)Assets decrease and liabilities decrease.
• D)Liabilities decrease and stockholders' equity increases.

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Definitions:

Need For Approval

This is a psychological condition where an individual's sense of self-worth is significantly influenced by the acceptance or validation from others.

Reflexiveness

The ability to analyze one's own behaviors, thoughts, and emotions critically and consider how they affect others.

Responsiveness

Tendency to be sensitive to the needs of others, including being sympathetic to others’ feelings and placing the feelings of others above one’s own feelings.