The Journal Entry for Recording Payment for the Short-Term Lease

question 26

Multiple Choice

The journal entry for recording payment for the short-term lease of a fixed asset would

• A) be a memo entry only
• B) debit the fixed asset and credit Cash
• C) debit Rent Expense and credit Cash
• D) debit a liability and credit Cash

---

Definitions:

Ethical

Concerned with or relating to ethics or the standards of right and wrong behavior.

Cause and Effect

A relationship in which one event (the cause) makes another event happen (the effect).

Placebo Effect

The phenomenon where patients experience real improvements in their condition after receiving a treatment that has no therapeutic effect.

Positive Expectations

The belief or anticipation that something good will happen in the future, often leading to more favorable outcomes due to optimistic attitudes.