A Landlord Collected $5,000 Cash from a Tenant for December

question 17

Multiple Choice

A landlord collected $5,000 cash from a tenant for December 2016's rent but the tenant's rent for December is $8,000. Which of the following is true with respect to the landlord's financial statements using generally accepted accounting principles?

• A)$8,000 would be reported on the statement of cash flows.
• B)$8,000 would appear on the balance sheet as rent receivable.
• C)$8,000 would appear on the income statement as rent revenue.
• D)$5,000 would appear on the balance sheet as prepaid rent.

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Definitions:

Theory of Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place. It considers attitudes, subjective norms, and perceived behavioral control.

Subjective Norms

The perceived social pressure to perform or not perform a particular behavior, influenced by the beliefs about what important others think one should do.

Predictors

Factors that can be used to forecast the likelihood of a future event or outcome, often based on statistical analysis.

Self-Efficacy Theory

A theory that focuses on the belief in one's capabilities to organize and execute the courses of action required to manage prospective situations.