3 Quiz help Aland rdcolected 6500 cash fom a tenant for Dece

3 Quiz help Aland rdcolected $6.500 cash fom a tenant for December 20 6% rent but the tenan, rentfor December ist.9oo which oft efoloeng is true we, espect tothe O $8.900 would appear on the income stabement as rent revenue earned O $8,900 would be reported on the statement of cash flows O $6,500 would appear on the balance sheet as prepaid rent O $8,900 would appear on the balance sheet as rent receivable

Solution

Generally accepted accounting principles is using accural basis of accounting so if rent revenue for the period is 8900 and receive only 6500. Then 8900 will be reported as rent revenue in income statement.

so answer is a) $8900 would appear on the income statement as rent revenue earned