The Unearned Rent Account Has a Balance of $50,000

question 20

Multiple Choice

The unearned rent account has a balance of $50,000. If $3,000 of the $50,000 is unearned at the end of the accounting period, the amount of the adjusting entry is:

• A) $47,000.
• B) $53,000.
• C) $50,000.
• D) $3,000.

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Definitions:

Tendered Bid

A formal offer submitted in response to an invitation to bid for a project, often including price and terms of service.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," implying that the buyer assumes the risk about the quality and condition of the product being sold.

Standard Form Contract

A contract with fixed terms prepared by a business.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.