When a landlord records rent received in advance from a tenant in a revenue account, the adjusting entry required at year end to allocate the rent to the proper periods has an impact on financial statement elements. What effect (increase, decrease, no effect) does the required adjustment have on each of the following elements?
$\begin{array}{|l|l|}
\hline \text { Assets } & \text { Revenues } \
\hline \text { Liabilities } & \text { Expenses } \
\hline \text { Shareholders' equity } & \
\hline
\end{array}$

Question

When a landlord records rent received in advance from a tenant in a revenue account, the adjusting entry required at year end to allocate the rent to the proper periods has an impact on financial statement elements. What effect (increase, decrease, no effect) does the required adjustment have on each of the following elements?
 $\begin{array}{|l|l|}
\hline \text { Assets } & \text { Revenues } \
\hline \text { Liabilities } & \text { Expenses } \
\hline \text { Shareholders' equity } & \
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of When a landlord records rent received in advance from a tenant in a revenue account, the adjusting entry required at year end to allocate the rent to the proper periods has an impact on financial statement elements. What effect (increase, decrease, no effect) does the required adjustment have on each of the following elements?
 $\begin{array}{|l|l|}
\hline \text { Assets } & \text { Revenues } \
\hline \text { Liabilities } & \text { Expenses } \
\hline \text { Shareholders' equity } & \
\hline
\end{array}$

When a Landlord Records Rent Received in Advance from a Tenant