8. The unearned rent account has a balance of $40,000. If $3,000 of the $40,000 is unearned at the end of the accounting period, the amount of the adjusting entry is (Points : 2)

$3,000. $40,000. $37,000. $43,000.

7. Deferred expenses (prepaid expenses) are items initially recorded as assets but are expected to become __________ over time. (Points : 2)

Liabilities Assets stockholders