Question
QRT Co. received $1,560 advance from Zync Inc. as rent for the use of a building owned by QRT Co. How does this transaction affect
QRT Co. received $1,560 advance from Zync Inc. as rent for the use of a building owned by QRT Co. How does this transaction affect QRT's accounts if QRT recognizes a liability on receipt of the rent?
a.Cash is increased, and unearned rent is increased.
b.Cash is increased, and rent income is decreased.
c.Cash is increased, and prepaid rent is increased.
d.Cash is increased, and sales revenue is increased.
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Brinks Modern Internal Auditing A Common Body Of Knowledge
Authors: Robert R. Moeller
7th Edition
0470293039, 978-0470293034
