ABC Collects Rents from Several Properties

question 23

Multiple Choice

ABC collects rents from several properties. Prior to recording adjusting entries, assume the rent income account has a credit balance of $8000. Two adjustments are to be made at the end of the financial year (1) an accrual for accrued rent income of $600 (2) the unearned rent income account is to be decreased by $200. After processing these adjusting entries the amount of rent income to be shown in the income statement is:

• A) $8800.
• B) $8400.
• C) $7600.
• D) $7200.

---

Definitions:

Experience-curve Pricing

A pricing strategy that takes into account the decreased costs associated with increased production experience and volume.

Profit-oriented Approaches

Business strategies aimed at maximizing profit margins and financial outcomes.

Revenue

The total amount of money that a company receives from its activities, usually from the sale of goods and services to customers, before any expenses are subtracted.

Self-mutilation

The act of deliberately hurting one’s own body without intending to cause death, often as a way to cope with emotional pain.