Q7. Catalonia and Co. made payments totalling 32,000 for rent during the year ended on 31 December 2020 and on 31 December 2019 there was a prepayment of 13,000. The rent payable (according to the contract with the owner of the premises) is 5,000 a month. What is the amount that should be charged to the 2020 income statement and shown on the statement of financial position of the business as at 31 December 2020? a) Income statement 32,000; Statement of financial position 15,000 prepayment. b) Income statement 60,000; Statement of financial position 15,000 prepayment. c) Income statement 32,000; Statement of financial position 15,000 accrued expense. d) Income statement 60,000; Statement of financial position 15,000 accrued expense. Q8. The price/earnings ratio multiplied by the e) Dividend per share f) Dividend yield g) Earnings per Share h) Cash flow per share will give the current market value of each share in the company.