Does the accounting change in revenue recognition for a new system which requires the recognition of deferred revenue matter to managers?

From the following, select the accurate equations that relate to revenue, expenses, and profits. *Multiple answers may apply

A. Revenues = Profit + Expenses

B. Profit = Revenue - Expenses

C. Expenses = Revenue - Profit

D. Profit = Revenues + Expenses

E. Expenses = Profit + Revenues

**Letter B answer only is wrong.

A company provides subscriptions to magazines. On October 1st, it collects $10 million and credits to sales revenue. On December 31st, the subscription is 1/3 expired. What would be the adjusting entry at year-end? I don't remember the answer choices but I think they all had unearned revenue and subscription revenue.

1.) What are some conditions that a company would recognize revenue over a period of time?

2.) Why are companies required to recognize some revenue over a period of time?

3.) Looking at the principle and process, what are some areas that you think a company could make some errors in recognizing revenue?

Indicate whether True or False

a)In perfect competition, price is equal to marginal revenue while in monopoly price is greater than marginal revenue

b)No supply curve exists for a monopoly in the sense that a supply curve exists for a perfectly competitive firm

c)Because the marginal revenue curve for a monopolist lies below its demand curve,the profit -maximizing price of the monopolist will be above marginal cost

d)The profit- maximizing level of output for a monopolist is the one at which marginal revenue equals marginal cost

You are considering decreasing your wheat production by 50 acres and planting 50 more acres of potatoes. You have decided to use a partial budget to make your decision. Fill in each box with an example or description of what should be included and answer the questions below. Additional Revenue Reduced Revenue Reduced Costs Additional Costs

What costs would not need to be considered in this partial budget?

How would you make the decision?

Build a probability model, compute the average revenue per passenger, and compute the corre- sponding standard deviation. About how much revenue should the airline expect for a flight of 120 passengers? With what standard deviation? Note any assumptions made and whether they are justifiedBuild a probability model, compute the average revenue per passenger, and compute the corre- sponding standard deviation. About how much revenue should the airline expect for a flight of 120 passengers? With what standard deviation? Note any assumptions made and whether they are justified

1. Consider the case of a good for which the absolute value of the price elasticity of demand is greater than one. A fall in price would be associated with

Group of answer choices

A         a marginal revenue greater than zero and a rise in total revenue

B          a marginal revenue less than zero and a fall in total revenue

2. Consider the case of a good for which the absolute value of the price elasticity of demand is less than one. A fall in price would be associated with

Group of answer choices

A         a marginal revenue greater than zero and a rise in total revenue

B         a marginal revenue less than zero and a fall in total revenue

3. The absolute value of the price elasticity of demand of a straight-line demand curve

Group of answer choices

A         is constant and equal to one

B         varies over its length from infinity to zero (as price falls)

C          varies over its length from zero to infinity (as price falls)

4. A drought that destroys half of all farm crops would be good for farmers if the price elasticity of demand for farm crops were

Group of answer choices

A         elastic

B         inelastic

C          equal to one

5. Although such a drought might be good for farmers, an individual farmer would not destroy his own crops in the absence of a drought because the price elasticity of demand for his own crops is

Group of answer choices

A         equal to one

B         infinitely elastic

C          infinitely inelastic

CircuitTown commenced a gift card program in January 2021 and sold $11,900 of gift cards in January, $19,450 in February, and $20,850 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $8,100 for the January gift cards sold, $4,600 for the February cards, and $6,100 for the March cards. CircuitTown considers gift cards to be “broken” (not redeemable) 10 months after sale.

Required:
1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021?
2. Prepare journal entries to record the sale of January gift cards, the redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards.
3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021?
4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021?

How much revenue will CircuitTown recognize with respect to January gift card and March gift card sales during 2021? What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021?