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:

Egocentrism

A cognitive characteristic where an individual interprets the world solely from their own perspective, often failing to recognize that others may have different views and feelings.

Sensorimotor

Pertaining to the developmental stage (usually from birth to about 2 years of age) in which a child learns to interact with the environment through physical movement and senses.

Preoperational

The second stage in Piaget’s cognitive development theory, characterized by symbolic thinking, egocentrism, and intuitive reasoning in children from about 2 to 7 years old.

Concrete Operational

In Piaget's conceptualization of cognitive progression, a period where children acquire the capacity for logical thought about actual events.