The Balance in the Prepaid Rent Account Before Adjustment at the End

question 111

Multiple Choice

The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is

• A) debit Rent Expense, $6,000; credit Prepaid Rent, $6,000
• B) debit Prepaid Rent, $18,000; credit Rent Expense, $6,000
• C) debit Rent Expense, $18,000; credit Prepaid Rent, $6,000
• D) debit Prepaid Rent, $6,000; credit Rent Expense, $6,000

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Definitions:

Standard Errors

A measure of the statistical accuracy of an estimate, calculated from the standard deviation of the sampling distribution.

Sample Mean

This is the average of all the values in a sample set, calculated by summing all the numbers in the sample and then dividing by the count of the sample.

Control Limits

Predetermined boundaries in statistical process control charts that signal when a process might be out of control, based on the process's historical data.

Standard Errors

Standard errors quantify the variability or uncertainty in a statistic, such as the mean, estimated from a sample when it is used to estimate the true population parameter.