A company recorded the $19,000 adjusting entry for the expiration of prepaid rent by debiting revenues...

Question

Question

A company recorded the $19,000 adjusting entry for the expiration of prepaid rent by debiting revenues and crediting liabilit

Answer 1

Answer #1


	when the revenue is recognised we debit prepaid rent
	and credit rent revenue
	hence net income is understated by $19,000


	Correct option
	option b
	$19,000	understated

Answer 2

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