Hank's Tax Planning Service Started Business in January, 2014

question 12

Multiple Choice

Hank's Tax Planning Service started business in January, 2014. He rented an office for $1,800 a month starting January 1. On January 1, he prepaid the rentals through June 30. He makes accrual adjustments monthly. What is the balance in the Prepaid Rent account as of April 30?

• A)$3,600
• B)$300
• C)$1,800
• D)$900

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Definitions:

Self-Fulfilling Prophecy

An anticipation that comes to pass as a result of a positive feedback loop between one's actions and beliefs, making it true either directly or indirectly.

Belief

An acceptance that something exists or is true, especially one without proof.

Fulfillment

The achievement of something desired, promised, or predicted, leading to satisfaction or happiness.

Self-Fulfilling Prophecy

The phenomenon where an individual's expectations about another person or situation cause that expectation to become a reality.