1. One of the major advantages of adjustments to help improve the quality of financial statements is that they:

A. ensure that revenues and expenses are recognized during the period they are earned and incurred.

B. ensure that all esmates of future acvies are eliminated from consideraon. C. ensure that revenues and expenses are recognized conservavely during the period in which they are paid.

D. provide an opportunity to manipulate the numbers to the best advantage of the reporng company.

2. On December 1, 2022, Shamrock Company received $3,600 from Desny, Incorporated for rent of an office owned by Shamrock Company. The payment covers the period from December 1, 2022 through February 28, 2023. Shamrock Company recorded this as Deferred Rent Revenue when it was received on December 1. The adjusng entry on December 31 would include a:

A. credit to Rent Revenue of $1,200.

B. credit to Deferred Rent Revenue of $1,200.

C. debit to Rent Revenue of $1,800.

D. debit to Deferred Rent Revenue of $1,800.