Which of the Following Does Not Correctly Describe the Following $\quad$

question 5

Multiple Choice

Which of the following does not correctly describe the following journal entry? Rent expense
$\quad$$\quad$ Prepaid rent

• A)Total assets decrease.
• B)Retained earnings are not affected.
• C)Stockholders' equity decreases.
• D)Net income decreases.

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Definitions:

Acquisition

The act of one business securing the bulk or all of another company’s equity to take over control.

Shareholders

Individuals or entities that own shares in a corporation, thus holding a portion of the company's equity.

Proxy Contests

A competition for the proxy votes of shareholders, typically aimed at gaining control of the company's board of directors.