Fragmental Co

question 239

Multiple Choice

Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $800. Fragmental collected the entire $6,400 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:

• A) A debit to Rent Revenue and a credit to Cash for $2,400.
• B) A debit to Rent Revenue and a credit to Unearned Rent for $2,400.
• C) A debit to Unearned Rent and a credit to Rent Revenue for $4,000.
• D) A debit to Unearned Rent and a credit to Rent Revenue for $2,400.
• E) A debit to Cash and a credit to Rent Revenue for $6,400.

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Definitions:

Selection Bias

A distortion in a statistical analysis resulting from the method of collecting samples, where some members of the intended population are less likely to be included than others.

Natural Groups

Groups that exist in the real world as they are, without manipulation or creation for research purposes, such as ethnic or gender groups.

Two Groups

A research design involving comparison between two separate groups of participants to determine the effect of a variable.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.