PRC-1 · Chapter 4 · Question 26 of 100
Which of the following year-end adjustments is correctly matched with its classification in the Statement of Financial Position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rent received in advance -> Current Liability
Explanation
Rent received in advance is unearned income, which is an obligation to provide a service in the short term, making it a current liability.
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