A Landlord Collected $5,000 Cash from a Tenant for December

question 50

Multiple Choice

A landlord collected $5,000 cash from a tenant for December 2011's rent but the tenant's rent for December is $8,000.Which of the following is true with respect to the landlord's financial statements?

• A)$8,000 would be reported on the statement of cash flows.
• B)$8,000 would appear on the balance sheet as rent receivable.
• C)$8,000 would appear on the income statement as rent revenue earned.
• D)$5,000 would appear on the balance sheet as prepaid rent.

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Definitions:

Self-Verification

The desire to be understood and recognized by others according to one's firmly held beliefs and feelings about oneself.

Self-Handicapping

A cognitive strategy by which people avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Self-Complexity

A concept in psychology that describes the extent to which an individual’s self-concept is comprised of multiple and distinct aspects.

Self-Serving Attributional Bias

The common tendency to attribute one’s successes to personal characteristics and failures to external factors.