Posted: September 23rd, 2016
Hunt Corporation recorded a business event using T-accounts as follows:
Rent Expense Prepaid Rent
1,000 1,000
Which of the following reflects how this event affects the company’s financial statements?
Assets = Liab. + Equity Rev. – Exp. = Net Inc Cash Flows
+ = + + NA NA – NA = NA +FA
– = NA + – NA – + = – NA
+ = NA + + + – NA = + +OA
– = – + NA NA – + = – -OA
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