How Would a Payment for Rent Paid in Advance Be

question 3

Multiple Choice

How would a payment for rent paid in advance be classified?

• A)Asset source transaction
• B)Asset use transaction
• C)Asset exchange transaction
• D)Claims exchange transaction

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Definitions:

Certified Check

A check guaranteed by a bank, verifying that the signer has enough funds available and that the signature is genuine.

Cashier's Check

A check issued by a bank, drawn on its own funds and signed by a cashier, guaranteeing payment.

Liable

The condition of being legally accountable for specific actions or responsibilities, particularly in relation to debts or legal duties.

Oral Stop-Payment Order

A verbal instruction to a financial institution to cancel the payment process of a check or transaction.