If an Adjusting Entry Includes a Debit to Rent Expense,that

question 105

Multiple Choice

If an adjusting entry includes a debit to Rent expense,that would indicate that the payment of rent had been previously recorded as a(n) ________ entry.

• A) prepaid expense
• B) depreciation
• C) accrued expense
• D) accrued revenue

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Definitions:

Legal Fees

Payments made to attorneys or law firms for legal services rendered, which may include consultations, representation in litigation, and preparation of legal documents.

Promoter Fees

Fees paid to an individual or company that facilitates the promotion or creation of a business opportunity or event.

Minimum Legal Capital

The least amount of capital that must be maintained by a corporation as required by law, intended to protect creditors.

Stock Subscriptions

Commitments made by investors to purchase shares of stock from a company, often before they are issued.