On 01.10.20X1, TK transfers the annual rent of EUR 7,000 for the business and office space for one year in advance. Which of the following statements regarding business transactions in 20X1 is/are correct? O The annual rent reduces the profit in 20X1 by EUR 7,000. O Another liability must be recognized. O The payout is EUR 7,000 and the expense is EUR 1,750. O An anticipatory deferred item must be formed.
On 01.10.20X1, TK transfers the annual rent of EUR 7,000 for the business and office space for one year in advance. Which of the following statements regarding business transactions in 20X1 is/are correct? O The annual rent reduces the profit in 20X1 by EUR 7,000. O Another liability must be recognized. O The payout is EUR 7,000 and the expense is EUR 1,750. O An anticipatory deferred item must be formed.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 24P
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![On 01.10.20X1, TK transfers the annual rent of EUR 7,000 for the business and office space for one year in advance. Which of the following statements regarding business transactions in 20X1
is/are correct?
O The annual rent reduces the profit in 20X1 by EUR 7,000.
O Another liability must be recognized.
O The payout is EUR 7,000 and the expense is EUR 1,750.
O An anticipatory deferred item must be formed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe485aadf-02bf-4f7a-8a79-30447322a684%2Fddbc72af-faea-4544-9323-69f3cd2a2a68%2Fowf871n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On 01.10.20X1, TK transfers the annual rent of EUR 7,000 for the business and office space for one year in advance. Which of the following statements regarding business transactions in 20X1
is/are correct?
O The annual rent reduces the profit in 20X1 by EUR 7,000.
O Another liability must be recognized.
O The payout is EUR 7,000 and the expense is EUR 1,750.
O An anticipatory deferred item must be formed.
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