To take advantage of a zero percent rent increase for the coming year, a company paid, at year-end, $150,000 rent for the first three months of the next year.
What would the effect of this transaction on the company's year-end accounting equation?
A) No effect on Assets; $150,000 decrease in Liabilities; $150,000 increase in Stockholders' Equity
B) $150,000 increase in Assets; $150,000 increase in Liabilities; No effect on Stockholders' Equity
C) $150,000 increase in Assets; No effect on Liabilities; $150,000 increase in Stockholders' Equity
D) No effect on Assets; No effect on Liabilities; No effect on Stockholders' Equity
Correct Answer:
Verified
Q20: Which of the following is true of
Q21: A company incurred $60,000 (to be paid
Q22: A company incurred $180,000 (to be paid
Q23: A company incurred $40,000 (to be paid
Q24: A company incurred $120,000 (to be paid
Q26: To take advantage of a zero percent
Q27: A company received a $24,000 payment for
Q28: A company received a $72,000 payment for
Q29: A company received $11,000 cash in exchange
Q30: A company received $33,000 cash in exchange
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