Which of the following correctly describes the effects of recording deferred revenues when cash is received...

Which of the following correctly describes the effects of recording deferred revenues when cash is received from a customer in advance of the services to be provided?
A. Revenues are increased
B. Liabilities are not affected
C. Retained earnings increases
D. Net income is not affected

Expert Solution

Solution :- Net Income is not affected

Transaction	General Journal	Debit ($)	Credit ($)	Impact
a	Bank Account	XXX		Increase in Asset
	To Customer Account		XXX
	(Being amount received from customer)

b	Customer Account	XXX
	To Deferred Revenue Account		XXX	Increase in Liabilities
	(Being amount transferred to Deferred Revenue

ekkarill92 answered 2 years ago

Which of the following are revenues? • 1. Provided a cleaning service and received $200 cash...

Which of the following are revenues? • 1. Provided a cleaning service and received $200 cash 2. Earned $400 interest on bank deposit, amount not yet paid by the bank 3. Provided management services to client. The fee for this service has been received in advance 4. Received $2000 deposit for goods to be delivered in the future

Whether an adjustment is accrued or deferred is key when recording it?

some people often have difficulty understanding the concept of Deferred Revenues. Deferred Revenues occur when someone...

some people often have difficulty understanding the concept of Deferred Revenues. Deferred Revenues occur when someone pays you to provide a service or good ahead of time. Since you haven’t earned the money yet, you record it as Unearned Revenue, a liability. Once the revenue is ‘earned’ you write-off the liability and recognize revenue. Are there any moral issues involved in accepting money before it is earned? What happens if you fail to provide the service or good to the...

Which of the following correctly describes what happens when an atomic bomb explodes? Question 1 options:...

Which of the following correctly describes what happens when an atomic bomb explodes? Question 1 options: Small pieces of fissionable material are joined and form a body with a mass greater than the critical mass, the relative number of neutrons escaping decreases, and a chain reaction and explosion result. Large pieces of fissionable matter are brought together quickly and form a body with a mass smaller than the critical mass, the relative number of escaping neutrons increases, and a chain...

1) Deferred revenue occurs when cash is received from a customer before work or the sale...

1) Deferred revenue occurs when cash is received from a customer before work or the sale is completed. True False 2) In accrual accounting, revenue may be earned prior to or after cash is received. True False 3)An expense incurred in 2016 is not paid until 2017. Using the accrual basis of accounting, the expense should appear on: A.both the 2016 and 2017 income statements B.the 2016 income statement C.neither the 2016 nor 2017 income statement D.the 2017 income statement...

You are the SELLER in a negotiation. Which of the following patterns correctly describes the relationship...

You are the SELLER in a negotiation. Which of the following patterns correctly describes the relationship between the following values: A. Target<BATNA<Reservation Price B. Target=Reservation Price > BATNA C. BATNA<Reservation Price<Target D. BATNA<Target<Reservation Price E. Reservation Price<Target<BATNA

Which of the following correctly describes the exercise-aging cycle? a. Self-fulfilling prophecy becomes reality when elderly...

Which of the following correctly describes the exercise-aging cycle? a. Self-fulfilling prophecy becomes reality when elderly individuals start believing their “uselessness”; given the age discrimination, they behave accordingly, as though they cannot do anything useful. b. Psycho-social barriers and perception of inappropriateness for some motor behavior, reduce the likelihood for physical activity in older citizens c. Decreasing activity/exercise is highly associated with increasing age: the cycle can be precipitated by either side: age or activity. d. Reduced expectations for elderly...

Which of the following correctly describes the relationship between the stolon and hyphae in fungi? (2...

Which of the following correctly describes the relationship between the stolon and hyphae in fungi? (2 points) * Hyphae are provided structural support by the stolon. * Hyphae can grow to form a stolon above ground. * Hyphae produce spores, and the stolon distributes them. * Hyphae store the spores that are produced by the stolon.

50. Which of the following correctly describes the meaning of the p-value? a. The p-value is...

50. Which of the following correctly describes the meaning of the p-value? a. The p-value is the probability we would get results like our sample (or something more extreme), given the null hypothesis is true. b. The p-value is the probability the alternative hypothesis is true. c. The p-value is the probability the null hypothesis is true, given our sample. d. The p-value is the probability the null hypothesis is true. e. The p-value is the probability the alternative hypothesis...

1.Which of the following correctly describes the difference between an LLP and an LLC? a)Partners of...

1.Which of the following correctly describes the difference between an LLP and an LLC? a)Partners of an LLC are NOT allowed to purchase a company's stock shares, while partners of an LLP are allowed to purchase a company's stock shares. b)Partners of an LLC are legally treated the same as a business, while partners of an LLP bear no legal responsibility. c)Partners of an LLC exist separately from owners and shareholders, while partners of an LLP are held accountable for...

Question