Severin Leased a Small Shop from Matthew for a Five-Year

question 17

True/False

Severin leased a small shop from Matthew for a five-year term. The shop was located in a small town. The right to distrain against the goods of Severin would be a remedy available to Matthew, if Severin should default in the payment of his rent.

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Definitions:

Deferral Adjusting Entry

An accounting entry made to defer the recognition of revenue or expenses to a future period.

Unearned Revenue

Money received by an entity for a service or product that has yet to be delivered or completed.

Interest Revenue

Income earned from lending money or from investments in interest-bearing accounts or securities.

Matching Revenue

The accounting principle of recognizing revenue and the related expenses in the same accounting period to accurately report profit.