The Lazarus Company Recorded the Following Adjustment in General Journal $$\begin{array} { | l | r | r | } \hline \text { Rent Experse } & 1,200 & \\\hline \text { Prepaid Rent } & & 1,200 \\\hline\end{array}$$

question 95

Multiple Choice

The Lazarus Company recorded the following adjustment in general journal format:
$$\begin{array} { | l | r | r | } \hline \text { Rent Experse } & 1,200 & \\\hline \text { Prepaid Rent } & & 1,200 \\\hline\end{array}$$
Which of the following choices accurately reflects how this event would affect the company's financial statements?
$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | c | } \hline&&&&&\text { Stk. }&&&&&&\text { Stmt of }\\ &\text { Asset }&=&\text { Liab. }&+&\text { Equity }&\text { Rev. }&-&\text { Exp. }&=&\text { Net Inc. }&\text { Cash Flows }\\\hline A&NA&=&+&+&-&NA&-&+&=&-&+OA\\\hline B&-&=&NA&+&-&NA&-&+&=&-&-OA\\\hline C&-&=&NA&+&-&NA&-&+&=&-&NA\\\hline D&NA&=&-&+&+&NA&-&+&=&-&-IA\\\hline\end{array}$

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

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Definitions:

Near-Death Experience

An altered state of consciousness reported after a close brush with death (such as through cardiac arrest); often similar to drug-induced hallucinations.

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A condition resulting from the excessive loss of body water, affecting bodily functions.