NO.PZ2018062004000017
问题如下:
John has a bicycle factory and signed a contract to rent a plant for ten years recently. He prepaid the first three-year rent by cash which is $10,000 per year. At present, this transaction will most likely result in:
选项:
A.no effect on assets
B.an increase in expenses of $30,000
C.a decrease in assets of $30,000
解释:
A is correct. The rent expenses will not be recognized in the income statement in terms of accrual accounting. The rent decreases the cash by $30,000 and increases the prepaid expenses by $30,000, both of which are in the assets. In general, there is no effect on assets.
RT