Hank's Tax Planning Service Started Business in January,2012

question 21

Essay

Hank's Tax Planning Service started business in January,2012.He rented an office for $900 a month starting January 1.He prepaid the rentals through June 30.He makes accrual adjustments monthly.As of April 30,Hank's ledger shows a balance in Prepaid Rent of how much?
A) $1,800
B) $900
C) $2,700
D) $5,400

• A) $1,800
• B) $900
• C) $2,700
• D) $5,400

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Definitions:

Revenue Driver

Key factors or activities that significantly influence or contribute to the generation of income for a business.

Presales Costs

Expenses incurred during the preliminary phase of a sales process, such as market research, product development, and pitch preparation, before actual sales begin.

Cost Of Goods Sold

The immediate expenses linked to the creation of products sold by a business, such as materials and labor.

Financial Report

A formal record of the financial activities and position of a business, person, or other entity, typically prepared on a quarterly or annual basis.