Question
A transaction has been recorded in the T-accounts of Powell Corporation as follows: Rent Expense 1,000 Prepaid Rent 1,000 Which of the following reflects how
A transaction has been recorded in the T-accounts of Powell Corporation as follows:
Rent Expense | |
1,000 |
|
Prepaid Rent | |
| 1,000 |
Which of the following reflects how this event affects the company's financial statements?
| Asset | = | Liab. | + | Stk. Equity | Rev. | Exp. | = | Net Inc. | Stmt of Cash Flows | |
A. | + | = | + | + | NA | NA | NA | = | NA | +FA | |
B. | = | NA | + | NA | + | = | NA | ||||
C. | + | = | NA | + | + | + | NA | = | + | +OA | |
D. | = | + | NA | NA | + | = | OA |
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve
9th Edition
0324381921, 978-0324381924
