How would a payment for rent paid in advance be classified? Multiple Choice Claims exchange transaction Asset use transaction Asset source transaction Asset exchange transaction

Asset exchange transaction

Explanation:

Prepaid rent is an asset exchange transaction because cash (asset) is credited while prepaid rent (also an asset) is debited.

Rent paid in advance is recorded as follows:

Dr Prepaid rent

    Cr Cash

As the months go by, the prepaid rent is credited and rent expenses is debited.

Dr Rent expense month 1

    Cr Prepaid rent month 1

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

the answer is a.

by: nicholas dooley