In October,your Company Prepays Rent of $7,000 for November and December.Which

question 66

Multiple Choice

In October,your company prepays rent of $7,000 for November and December.Which of the following describes the effects of this transaction in October?

• A)Assets decrease $7,000 and liabilities decrease $7,000.
• B)Assets increase $7,000 and Shareholders' equity increases $7,000.
• C)There is no change to total assets,liabilities or Shareholders' equity.
• D)Liabilities decrease $7,000 and Shareholders' equity increases $7,000.

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Definitions:

Marginal Cost

The expense required to create one more unit of a product or service.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players' strategies remain unchanged.

Game

A strategic interaction among players, where each one makes decisions by considering the potential choices and outcomes of others.

Rival

A good whose consumption by one person diminishes the quantity or quality available for consumption by others.