A Transaction Has Been Recorded in the T-Accounts of Powell $\begin{array}{cc}\text { Rent Expense}\\\hline\begin{array}{ll|l}&1,000& \\\end{array}\end{array}$

question 28

Multiple Choice

A transaction has been recorded in the T-accounts of Powell Corporation as follows:
$\begin{array}{cc}\text { Rent Expense}\\\hline\begin{array}{ll|l}&1,000& \\\end{array}\end{array}$
$\begin{array}{cc}\text {Prepaid Rent }\\\hline\begin{array}{ll|l}&&1,000 \\\end{array}\end{array}$
Which of the following reflects how this event affects the company's financial statements?
$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | c | } \hline&&&&&\text { Stk. }&&&&&&\text { Stmt of }\\ &\text { Asset }&=&\text { Liab. }&+&\text { Equity }&\text { Rev. }&-&\text { Exp. }&=&\text { Net Inc. }&\text { Cash Flows }\\\hline A&+&=&+&+&NA&NA&-&NA&=&NA&+FA\\\hline B&-&=&NA&+&-&NA&-&+&=&-&NA\\\hline C&+&=&NA&+&+&+&-&NA&=&+&+OA\\\hline D&-&=&-&+&NA&NA&-&+&=&-&-OA\\\hline\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Expectancy Theory

A motivational theory suggesting that people will choose how to behave based on their expectations that certain actions will lead to desired outcomes.

Motivational Perspective

An approach focusing on understanding what drives people to achieve goals, perform tasks, and engage in behaviors.

Staffing Process

The series of steps an organization follows to attract, select, train, and retain employees.

Abilities Fit

The degree to which an individual’s capabilities, strengths, and skills align with their job requirements or organizational roles.