Answer:
Expenses will be understated, hence, Net Income will be overstated.
Rent prepaid will be overstated, hence, current assets will be overstated.
Explanation:
Ordinarily, rent prepaid is meant to be credited every month to the tune of the the value that has been consumed and then added to period expenses to reduce net income.
In the statement of Financial Position, the same amount that has been consumed should be used to reduce balance in rent prepaid account, otherwise, current assets will be overstated if no adjustment is made.
Yes you did it all correct
Joelle consumes food and garb. for earning near her modern-day income, her earnings expansion direction is negatively sloped. <u>Increasing </u><u>much less of 1 god whilst profits growth implies consuming extra of the opposite three .at the least one proper must be every day.</u>
The term “profits” commonly refers to the quantity of money, property, and different transfers of price acquired over a set time period in change for products or services. there may be no unmarried, preferred definition: earnings are described consistent with the context in which the idea is used.
Three of the main varieties of profits are earned passive, and portfolio. Earned income consists of wages, salary, tips, and commissions. Passive or unearned earnings may want to come from condominium homes, royalties, and restricted partnerships. Portfolio or funding income includes interest, dividends, and capital gains on investments.
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