Answer:
I think the question is incomplete
Debit Rent Expense is $8,000 whereas the credit Prepaid Rent is $8,000 of the above given accounting equation .
What is Deferred revenue ?
Money received for goods or services but not yet earned is referred to in accrual accounting as deferred income (also known as deferred revenue, unearned revenue, or unearned income). The revenue recognition principle states that it is recorded as a liability up to the time of delivery, at which point it is changed to revenue.
For instance, a business might get an annual software license payment on January 1 from a client who paid it in full. The business' fiscal year, nevertheless, concludes on May 31. Therefore, the business adopting accrual accounting only includes the fee in its revenues for the fiscal year it received the money, or five months' worth (5/12), of the fee. On the balance sheet for that year, the remaining amount is added to deferred income (liability).
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Answer:
D . The periodic rate of interest is 1.25% and the effective rate of interest is greater than 5%
Explanation:
Nominal rate = 5% compunded quaterly
rate of interest per quarter = 5% / 4
= 1.25%
effective rate of interest = ( 1 + 5% / 4 )4 - 1
= ( 1 + 0.0125)4 - 1
= 1.05094 - 1
= 5.094%
Answer: Option <u>" C. Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise. "</u> is generally true of all bonds.
Explanation: The negotiation of bonds in the open market can lead to a negative return on the bonds if the price of the bonds is negotiated with a sufficient premium. Remember that bond prices change inversely with the yield of a bond, the higher the price of a bond, the lower the yield. At some point, the price of a bond may increase enough to imply a negative return for the buyer.
The best choice here is A) They give out the samples and free trials as a test to see how common it is for people to be interested in their product.
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