Williams Enterprises Prepaid Six Months of Office Rent Totaling $9,000

question 108

Multiple Choice

Williams Enterprises prepaid six months of office rent totaling $9,000 on October 1,2017.Assuming Williams records deferred expenses using the alternative treatment,what would be the entry on October 1,2017?

• A)Debit Prepaid Rent and credit Cash for $9,000
• B)No entry is needed until the expense is incurred
• C)Debit Cash and credit Unearned Rent for $9,000
• D)Debit Rent Expense and credit Cash for $9,000

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Definitions:

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not identical, allowing for some degree of market power.

Monopolistic Firm

A company that possesses unique characteristics in its products or services, giving it significant control over its market prices.

Cournot Duopoly

An economic model that describes an industry structure in which two firms compete on output levels and choose quantities independently to maximize profit.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial health of a business.