What Effect Does "Recognizing Revenue at the End of the Accounting

question 198

Multiple Choice

What effect does "recognizing revenue at the end of the accounting period for rent previously received in advance" have on the accounting equation for an insurance company?

• A) Assets increase and liabilities decrease.
• B) Assets increase and shareholders' equity increases.
• C) Assets decrease and liabilities decrease.
• D) Liabilities decrease and shareholders' equity increases.

---

Definitions:

Widespread Famine

A severe shortage of food across a large geographic area, leading to widespread hunger and malnutrition.

Tragedy Of The Commons

The tendency for commonly owned natural resources to be overused, neglected, or degraded because their common ownership gives nobody an incentive to maintain or improve them.

Garrett Hardin

An ecologist known for his work on environmental issues and for introducing the concept of the "Tragedy of the Commons."

Overfishing

A situation where fish are caught at a pace faster than they can reproduce, leading to a depletion of fish stocks, which can jeopardize marine ecosystems and the economic sustainability of fishing industries.