Reference no: EM131786943

1. Panjim's prepaid expense account consists only of garage rental prepayments. Its 2015 beginning and ending balance were the same. Which one of the following statements must be true?

Panjim had no garage rental expenses during 2015

Panjim's prepaid expense account balance never varied during 2015
Panjim's prepaid expense account balance varied during 2015
None of the above statements is true

2. Carlita began 2014 with a taxes payable account balance of $3,000. On December 31, 2014, its taxes payable account balance is $7,000. How much did Carlita pay to the tax authorities during the year?

$2,000
$6,000
$4,000
Cannot be calculated