Thompson Company Sublet a Portion of Its Office Space for Ten

question 13

Multiple Choice

Thompson Company sublet a portion of its office space for ten years at an annual rental of $36,000,beginning on May 1.The tenant is required to pay one year's rent in advance,which Thompson recorded as a credit to Rental Income.Thompson reports on a calendar-year basis.The adjustment on December 31 of the first year should be

• A) Rental Income .......................12,000
• Unearned Rental Income ............12,000
• B) Rental Income .......................24,000
• Unearned Rental Income ............24,000
• C) Unearned Rental Income ..............12,000
• Rental Income ....................12,000
• D) Unearned Rental Income ..............24,000
• Rental Income ....................24,000

Identify the elements involved in preparing and responding to a Request for Proposal (RFP).

Analyze project performance using Earned Value Management (EVM) metrics such as cost variance (CV) and schedule performance index (SPI).

Understand the budgeting process, including budget estimates, budget at completion (BAC), and estimate to complete (ETC).

Excellence in determining the role of project budgeting and estimating towards overall project success and decision-making.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantified as the percentage change in quantity demanded divided by the percentage change in price.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price levels over a specific time frame.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.

Price Elasticity

A measure indicating the extent to which the demand for a merchandise changes following a price adjustment.