Mr Chatty's Paid June Rent for the Building Its Restaurant

question 182

Multiple Choice

Mr. Chatty's paid June rent for the building its restaurant occupies. This transaction is recorded with a

• A) debit to Rent Revenue.
• B) credit to Cash.
• C) debit to Accounts Payable.
• D) credit to Rent Expense.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Common Stock

Common Stock represents a type of equity ownership in a corporation, giving holders a share of the profits in the form of dividends and voting rights in corporate decisions.

Rate Of Yield

The earnings generated and realized on an investment over a particular period of time, expressed as a percentage.

Preferred Stock

A category of corporate ownership that possesses a superior right to the company's assets and profits compared to common stock, typically featuring stable dividend payouts.