Which of the Following Entries Records the Receipt of Cash

question 196

Multiple Choice

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

• A) Prepaid Rent, debit; Rent Revenue, credit
• B) Cash, debit; Unearned Rent, credit
• C) Cash, debit; Prepaid Rent, credit
• D) Cash, debit; Rent Expense credit

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having a partial ownership in the company.

Shareholders

Individuals or entities that own shares in a corporation, granting them certain rights and potential financial benefits from the company's performance.

Dissolved

The process of officially ending the existence of a corporate entity or partnership through legal means.

U.S. Constitution

The supreme law of the United States of America, establishing the framework of the national government and the rights of citizens.