When a Company Makes an End-Of-Period Adjusting Entry That Includes

question 108

Multiple Choice

When a company makes an end-of-period adjusting entry that includes a credit to Prepaid Rent,the debit is usually made to:

• A)Cash.
• B)Rent Expense.
• C)Rent Payable.

---

Definitions:

Simple Rate

Refers to a basic or straightforward percentage that does not involve compounding over time, typically in finance.

Salvage Value

Salvage value is the estimated residual value of an asset after it has reached the end of its useful life and is no longer useful for its original purpose.

Payback Period

The period of time needed to recover the initial cost of an investment.

Simple Rate

A basic or straightforward percentage or interest rate, not compounded or adjusted.