32. On August 1, 2022, Vida Company recorded a rent income covering 12 months for the amount received. Which of the following will be the most accurate effect if no adjustment will be made at the end of the year?A. Rent income for 2022 will be understated. * A. Rent income for 2022 will be understated. B. Cash balance at the end of 2022 will be OYerstated
32. On August 1, 2022, Vida Company recorded a rent income covering 12 months for the amount received. Which of the following will be the most accurate effect if no adjustment will be made at the end of the year?A. Rent income for 2022 will be understated. * A. Rent income for 2022 will be understated. B. Cash balance at the end of 2022 will be OYerstated
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:32. On August 1, 2022, Vida Company
recorded a rent income covering 12
months for the amount received.
Which of the following will be the
most accurate effect if no adjustment
will be made at the end of the year?A.
Rent income for 2022 will be
understated. *
A. Rent income for 2022 will be
understated.
B. Cash balance at the end of 2022 will be
overstated.
C. Total current liabilities at the end of 2022
will be understated.
D. Total current assets at the end of 2022
will be overstated.
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