Questions
MUF0022 Accounting Unit 2 - Semester 2, 2025 Quiz: BDA: Revenues
Single choice
On 1 January, Phuong received $6 000 cash for Prepaid Rent Revenue for the six months from 1 January to 30 June. Phuong prepares the financial reports yearly on 28 February. On balance day, 28 February, how much Prepaid Rent Revenue was remaining?
Options
A.a. $8 000
B.b. $4 000
C.c. $6 000
D.d. $2 000
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Step-by-Step Analysis
To tackle this problem, first note the time period covered by the prepaid rent and how revenue should be recognized.
Option a. $8 000: This would imply more revenue has been recognized than the amount prepaid for the six months, which is impossible given only tw......Login to view full explanationLog in for full answers
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