On January 1,Mountbatten Corporation Paid $18,000 for a Year's Advance

question 98

Multiple Choice

On January 1,Mountbatten Corporation paid $18,000 for a year's advance rent on a building and recorded it as Rent Expense.When financial statements are prepared on March 31,the adjusting entry should include ________.

• A)a credit to Cash for $13,500
• B)a credit to Rent Expense for $13,500
• C)a credit to Prepaid Rent for $4,500
• D)a debit to Rent Expense for $4,500

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Definitions:

Primary Drives

are innate biological needs (e.g., hunger, thirst, sleep) that motivate behavior essential for survival.

Hunger

A physiological state that motivates an organism to seek food for energy.

Thirst

The basic physiological sensation of needing to drink fluids, triggered by the body's need for water to maintain balance and function.

Homeostasis

The tendency of an organism to regulate internal conditions to maintain health and functioning, regardless of outside conditions.