A Transaction in Which Six Months' Rent Is Paid in Advance

question 151

Multiple Choice

A transaction in which six months' rent is paid in advance results in which of the following journal entries?

• A) Prepaid Rent - Debit; Cash - Credit
• B) Rent Receivable - Debit; Cash - Credit
• C) Rent Revenue - Debit; Cash - Credit
• D) Rent Expense- Debit; Cash - Credit

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Definitions:

Organisational Policies

Guidelines and rules that govern the operations, culture, and decision-making within an organisation, shaping its working environment and behavior.

Labour Market

The supply and demand for workers, in particular the workforce available for certain jobs and the need employers have for certain skills.

Dismissing An Employee

The act of permanently removing an employee from their position of employment, often due to performance issues or misconduct.

Training Technique

Methods or procedures used to enhance the skills, knowledge, and competencies of individuals, aimed at improving their performance in specific tasks or roles.