The Unearned Rent Account Has a $6,000 Credit Balance in the Unadjusted

question 201

Multiple Choice

The Unearned Rent account has a $6,000 credit balance in the unadjusted trial balance. There is a $1,000 debit adjustment to Unearned Rent. The adjusted trial balance will show Unearned Rent as a:

• A) $7,000 debit balance.
• B) $7,000 credit balance.
• C) $5,000 debit balance.
• D) $5,000 credit balance.

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Definitions:

Cash Disbursements

Payments made by a business in cash, including expenses, debt payments, and distributions to shareholders.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.

Receivables

Debts that customers have towards a firm for items or services that have been received or employed, yet remain unpaid.

Accounts Payable

Money owed by a company to its suppliers or vendors for products or services that have been received but not yet paid for.