If Rent Revenue of $5,000 Is Earned in 2012 but Will

question 56

Multiple Choice

If rent revenue of $5,000 is earned in 2012 but will NOT be received until 2013, what is the appropriate adjusting entry at December 31, 2013?

• A)
• \(\begin{array}{ll}
• \text { Rent Receivable } & 5,000 \\
• \text { Cash } & 5,000
• \end{array}\)
• B)
• Cash \(\quad 5,000\)
• Rent Revenue\(\quad 5,000\)
• C)
• \(\begin{array} { l r }
• \text { Rent Revenue } & 5,000 \\
• \text { Rent Receivable } & 5,000
• \end{array}\)
• D)
• \(\begin{array} { r r }
• \text { Rent Receivable } & 5,000 \\
• \text { Rent Revenue } & 5,000
• \end{array}\)

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Definitions:

Rate of Decrease

A measure of how quickly a quantity is diminishing over time, often expressed as a percentage or a ratio.

Percentage

A portion or share expressed as a fraction of 100, commonly used to compare differences in quantities.

Percentage

A rate, number, or amount in each hundred, represented by the symbol %.

Base

The fundamental component or main ingredient in a mixture, formula, or system.