UNI CoReceived $1,000 Advance from Newbie as Rent for the Use

question 112

Multiple Choice

UNI Co.received $1,000 advance from Newbie as rent for the use of a building owned by UNI.How does this transaction affect UNI's accounts if UNI recognizes a liability?

• A)Cash is increased and revenue is increased.
• B)Cash is increased and revenue is decreased.
• C)Cash is increased and unearned revenue is increased.
• D)It is not recorded.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Connecting Affiliations

Relationships or linkages between entities or organizations that facilitate communication, cooperation, or coordination.

Mutual Ownership

A form of corporate structure where customers of the entity own mutual interests in the company, such as in mutual insurance companies or cooperatives.

Consolidated Group

A group of companies that are controlled by a single parent company, which presents their financial statements as if they were a single economic entity.