Macky McClung Uses Accrual Accounting to Keep the Records of Her

question 20

Multiple Choice

Macky McClung uses accrual accounting to keep the records of her toy store.She paid $15,000 on January 1 for rent for the three months January-March.To correctly report her expenses for the month of January,what must her accounting entry accomplish?

• A)increase expenses by $5,000 and decrease assets by $10,000
• B)increase expenses by $5,000 and decrease assets by $5,000
• C)increase expenses by $10,000 and decrease assets by $5,000
• D)decrease expenses by $5,000 and increase assets by $5,000

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