Assume that cash is paid for rent to cover the next year. The appropriate debit and credit would be:O Debit Rent Expense, credit Cash.Debit Cash, credit Prepaid Rent.Debit Prepaid Rent, credit Cash.O Debit Prepaid Rent, credit Rent Expense.

Debit represents money leaving an account or an increase in expenses or assets, while credit…

Assume that cash is paid for rent to cover the next year. The appropriate debit and credit would be: O Debit Rent Expense, credit Cash. O Debit Cash, credit Prepaid Rent. O Debit Prepaid Rent, credit Cash. O Debit Prepaid Rent, credit Rent Expense.

Assume that cash is paid for rent to cover the next year. The appropriate debit and credit would be: O Debit Rent Expense, credit Cash. O Debit Cash, credit Prepaid Rent. O Debit Prepaid Rent, credit Cash. O Debit Prepaid Rent, credit Rent Expense.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which one of these does not affect the cash flow to creditors? Multiple Choice O O Interest paid on…

A: The "cash flow to creditors" is a financial metric that represents the cash-related transactions…

Q: Rent paid in advance will be deducted from:

A: Solution: Rent paid in advance is prepaid rent for which expense will be recognized in future when…

Q: Discuss the conversion from cash to accrual basis of an increase in accounts or notes receivable

A: In cash basis accounting the transactions are recorded when the cash related to them is issued or…

Q: how did you get the numbers for installment sales?

A: Instalment Method: The installment method is typically employed when a customer is permitted to…

Q: How do banks calculate the monthly payment on a loan?

A: Present value annuity formula is used to calculate the monthly payment on a loan. Here, The loan…

Q: Explain when EXACTLY you would prefer the previous balance method to the average daily balance…

A: Previous balance sheet method is a way wherein amount of interest is charged on the previous month…

Q: What are savings? Multiple Choice Additions or subtractions from debt. Outlays on household…

A: Saving is the amount set aside for future use. Savings is arise when income of an individuals are…

Q: nterest is a method of calculating the interest to be paid on a loan by combining the principal…

A: Add on interest refers to the method which is used when the person acquire the loan or the mortgage…

Q: Define Prepaid rent.

A: Prepaid Expense: It refers to the expenditure incurred by company that is paid in one accounting…

Q: HOW TO Find the finance charge of an installment loan.

A: Finance Charge: Generally speaking, financial charges are any fees or charges associated with…

Q: What is an annuity? How does it differ from a lump sum payment?

A: Annuity:An annuity refers to a series of payments made at regular time intervals. These are…

Q: The total that must be paid when a note becomes due is known as the note value. maturity value. face…

A: A Note is a Debt Instrument. It accrues interest on the principal value and the total amount due at…

Q: .The portion of the selling price paid by the customer at the time of purchase is called ________.…

A: Customers have to pay some amount to purchase on loan.

Q: How did you calculate the note payable long term for xi

A: Notes Payable are defined as the long-term liabilities that represent the amount to be paid by the…

Q: Aliability created for receiving cash for future services to be provided is termed a(n) O service…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: What is a credit card’s grace period? A) it is the amount of time after a purchase and before it…

A: Introduction: The time between the end of the billing cycle and the payment due date is called the…

Q: Which will result in a higher net worth? I. Paying down debt with cash flows. II. Making regular…

A: Net Worth: The value of all assets less the total value of all obligations equals the net worth. To…

Q: When you borrow money to pay for goods and services, you are using what form of payment? Savings…

A: Payment means the transfer of money or goods and services in return or exchange of any product or…

Q: Annuity and annuity due vary in that one is paid in advance.

A: This quotation explains abut Annuity and annuity due vary in that one is paid in advance.

Q: What are the primary characteristics of an annuity? Differentiate between an “ordinary annuity” and…

A: Annuity represents a series of equal amount of payment / receipt made on particular interval for a…

Q: Discounting means: Converting present value of money into future value. Converting annuity due to…

A: TIME value of Money states that money today is worth more than money received in future as the Money…

Q: Which type of loan is suitable for buying supplies? O a. Single term O b. Long term O C. Medium-term…

A: Loan is defined as the amount of money borrowed from someone, usually a financial institution. Types…

Q: Receivables are claims that are expected to be collected in cash, and are frequently classified as…

A: The term receivable comes when a business sells the merchandise to the customer on credit. The…

Q: What is grace period? O The amount of time you have before your payment is due. O The amount of time…

A: Ans. None of the above

Q: Does income approach convert future amounts to current amounts? 2. Is balance of payment accounts a…

A: In business, financial management is the practice of handling a company's finances in a way that…

Q: What is the real interest rate on your savings account?

A: Real Interest Rate = Nominal Interest Rate − Inflation Rate

Q: Fill in the blank. A loan on which you pay a fixed amount of money for a set number of payments is…

A: There are various ways of providing loan such as Fixed instalment loan where it must be repaid with…

Q: hat happens to the interest if I pay more than my payment amount on a car or home loan? What happens…

A: The loans are paid by equal monthly payments that carry the payment for interest and payment for…

Q: An annuity is a kind of financial contract. What's the difference between this and a one-time…

A: An annuity is a fixed series of payments over the period and contains a number of cashflows.

Q: Which will result in a higher net worth? I. Paying down debt with cash flows. II. Making…

A: The Net Worth is Shareholder's funds. It is comprise of Common Stock, preferred Stock and Retained…

Q: is a financial product that allows an individual to lend their money to a bank A and be paid an…

A: A savings account is a financial product that allows an individual to lend their money to a bank and…

Q: Suppose you have a $10 bill in your pocket. How is this money counted in the Fed balance sheet? A.…

A: Correct Answer = Option C = Liabilities Explanation First to understand the Concept of Federal…

Q: In the case of a bank's accrued interest ?revenues, which occurs first Earning The Interest Revenues…

A: Accrued Interest Revenue implies the interest revenue that has been earned but not yet received. It…

Q: Bramble Corp. provides at no extra charge a two-year warranty with one of its products, which was…

A: Some of the company selling product also offers a warranty with it. The warranty expenses refers to…

Q: What are the four common components of the payment a typical buyer makes to the bank for a house…

A: Introduction : four common components of the payment a typical buyer makes to the bank for a house…

Q: Explain the following terms:a. 2/10, n/30b. 3/15, n/60c. n/40d. What is the effective rate of…

A: A credit term refers to the payment terms referenced on the receipt at the hour of purchasing…

Q: Explain the difference between an ordinary annuity and an annuity due situation.

A: Annuity: It is amount of money payable to an individual at a periodic basis which is normally a…

Q: Is the following statement true or false? The deposits or payments are made at the end of the period…

A: Annuity is the fixed amount of investment, payment or deposit which is made at regular intervals.…

Q: What is a credit score? O The number of credit cards a person has. O The number of years a person…

A: Credit score is a 3 digit number ranging from 300 to 900 representing the creditworthiness of the…

Q: Simple interest refers to interest on a loan computed as a percentage of the loan amount. Compound…

A: COMPOUND INTEREST IS CALCULATED ON THE PRINCIPAL AMOUNT AND ALSO ON THE ACCUMULATED INTEREST OF…

Q: Explain how to calculate day’s sales in receivable.

A: Average collection period: Average collection period indicates the number of days taken by a…

Question

Assume that cash is paid for rent to cover the next year. The appropriate debit and credit would be:
O Debit Rent Expense, credit Cash.
Debit Cash, credit Prepaid Rent.
Debit Prepaid Rent, credit Cash.
O Debit Prepaid Rent, credit Rent Expense.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Explanation of Debit and Credit

VIEW

Step 2: Determining the correct option

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

To record interest earned but not yet * received, payee must accrued interest Debit Interest Receivable, Credit Interest Revenue Debit Interest Revenue, credit Interest Receivable Debit cash, credit Interest Receivable, Credit Interest Revenue Debit cash, debit Interest Receivable, Credit Interest Revenue
What is the impact of writing off a $500 account under the allowance method on Net Realizable Value?
TRUE OR FALSE:The average annual rental payments shall be recognized as rent receivable. If false, why?
Explain when EXACTLY you would prefer the previous balance method to the average daily balance including new purchase s method in determining your finance charge.
Annuity - what is it and how does it work? When compared to a one-time payment, how does this one work?
1. True or false. Rate of return is the interest earned on the unpaid balance of an amportized loan
Which of the following is considered an annuity? OA share of common stock. A conventional fixed payment mortgage. A construction loan with varying costs and payments. A cash payment for a new car. O A savings account with occasional deposits for a newborn child.
what formula was used to find ordinary annuity and annuity due?
In the amortization of loans, interest must be paid at the beginning of each period calculated on the balance of the principal amount due (unpaid balance). TRUE OR FALSE?
Loan Servicing Companies.. O Collects monthly payments, remits to investor O Purchase loans on the secondary market O Decide on credit criteria for new loans O Underwrite home loans
What three variables determine how much interest a person could earn from a savings account?
In excel annuity, we use the exactly same formula for payment beginning or ending payment. Question 1 options: True False