Answer:
The correct answer is letter "A": determines that expenses related to revenue be reported at the same time the revenue is reported.
Explanation:
According to the matching accounting principle, during the same accounting period, the revenues and expenditures needed to generate such revenues have to be recorded. This is part of the accrual accounting method that specifies expenses and revenue must be recorded when incurred not when cash is received.
<span>The answer is 'scanning the environment'.
Environmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats.</span>
Answer:
Debit Rent Receivable, $7,400; credit Rent Earned, $7,400.
Explanation:
As $3,700 is the revenue for Chase Company and accrued revenue is recorded in the receivable account. The rent for November and December is accrued and did not received by Chase Company. On December 31 the adjusting entry for the two month expense will be recorded as follow
Dr. Rent Receivable ( $3700 x 2) $7,400
Cr. Rent Earned $7,400
Note:
According to given data in the question the options are inconsistent with the question. Following answer is made according to given data.
As $4,000 is the revenue for Chase Company and accrued revenue is recorded in the receivable account. The rent for November and December is accrued and did not received by Chase Company. On December 31 the adjusting entry for the two month expense will be recorded as follow
Dr. Rent Receivable ( $4000 x 2) $8,000
Cr. Rent Earned $8,000
