On September 1,2016,Joy Company Paid $6,000 in Advance for an Eight-Month

question 37

Multiple Choice

On September 1,2016,Joy Company paid $6,000 in advance for an eight-month rental space covering the period of September,2016 through April 2017.The deferred expense was initially recorded as an asset.Joy Company makes adjusting entries once a year at year-end.The adjusting entry on December 31,2016 would include a ________.

• A)debit of $6,000 to Cash
• B)credit of $6,000 to Prepaid Rent
• C)debit of $3,000 to Rent Expense
• D)credit of $3,000 to Rent Expense

Calculate budgeted sales, cash collections, and cash disbursements.

Prepare comprehensive master budgets, including sales, production, and cash budgets.

Analyze budgeted income statements and balance sheets for planning purposes.

Comprehend the impact of sales on cash flows and working capital management.

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Definitions:

Ambivalent Attachment

The attachment style for infants who are unwilling to explore an unfamiliar environment but seem to have mixed feelings about the caregiver—they cry when the caregiver leaves the room, but they cannot be consoled by the caregiver upon the caregiver’s return.

Secure

Feeling of being safe, stable, and free from fear or anxiety.

Anxious

Experiencing worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.

Assimilation

The cognitive process of integrating new information into existing cognitive schemas, perceptions, and understanding.