Which of the Following Entries Records the Receipt of Cash $\quad$

question 58

Short Answer

Which of the following entries records the receipt of cash for 3 months' rent? The cash was received in advance of providing the service.
A. DR Cash $\quad$ CR Rent revenue

B. DR Cash $\quad$ $\mathrm { CR }$ Unearned revenue

C. DR Cash $\quad$ CR Prepaid rent

D. DR Cash $\quad$ CR Rent expense

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Definitions:

Equity Method

An accounting technique used for investments in which the investor has significant influence over the investee but does not exert full control, reflecting the investor's share of the investee's profits and losses.

Cost Method

An accounting method used to value certain investments based on their original purchase cost, without reflecting market value changes until realized.

Economic Interest

A stake or concern in an economic entity or activity, often referring to the level of investment or involvement an individual or organization possesses in a company or project.

Equity Method

An accounting technique used by companies to record their investments in other companies when they have significant influence but not full control.