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:

ATC Curve

Represents the Average Total Cost curve, showing the per-unit cost of production at different levels of output.

Efficient

Pertaining to a process or system that achieves maximum productivity with minimal wasted effort or expense.

Economy

Represents the system of production, distribution, and consumption of goods and services within a specific region or country.

Efficiency

Efficiency in economics means the optimal allocation of scarce resources to meet the desired objectives, minimizing waste and maximizing value.