On September 1,2018,Real Estate Professionals Company Paid $5,000 in Advance

question 65

Multiple Choice

On September 1,2018,Real Estate Professionals Company paid $5,000 in advance for an eight-month rental space covering the period of September 1,2018 through April 30,2019.The deferred expense was initially recorded as an asset.The company makes adjusting entries once a year at year-end.The adjusting entry on December 31,2018 would include a ________.

• A) debit of $5,000 to Cash
• B) credit of $5,000 to Prepaid Rent
• C) debit of $2,500 to Rent Expense
• D) credit of $2,500 to Rent Expense

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Definitions:

Disturbance of Attention

A reduction in the ability to focus the mind on a single task or object, often associated with conditions like ADHD.

Word Salad

A disorganized speech pattern characterized by a random, incoherent mix of words, phrases, or concepts.

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False beliefs held with strong conviction despite superior evidence to the contrary, often encountered in psychiatric disorders like schizophrenia.

Hallucinations

Perceptions in the absence of external stimuli that are experienced with a vivid sense of reality.