The Unearned Rent Account Has a Balance of $72,000

question 19

Multiple Choice

The unearned rent account has a balance of $72,000. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is

• A) $18,000
• B) $90,000
• C) $54,000
• D) $36,000

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Definitions:

Consolidated Financial Statements

Financial reports that aggregate the financial position and operating results of a parent company and its subsidiaries.

Common Stock

A type of security that represents ownership in a corporation, granting the holder a share in the company's profits and losses.

Consolidation Entry

Journal entries made in the consolidation process to adjust and eliminate intercompany transactions between parent and subsidiary entities in consolidated financial statements.

Inventory Transfer

The process of moving goods from one location to another within the same business entity.