Intermediate 2 QUIZ 2
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University of Houston *
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3368
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History
Date
Feb 20, 2024
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3
Uploaded by BaronMaskLyrebird18
10/3/23, 6:19 PM
Umehani Huzefa Janoowalla's quiz history: 08.31 Ch 06 - 2
https://canvas.uh.edu/courses/3807/quizzes/58777/history?version=1
1/3
08.31 Ch 06 - 2 results for Umehani Huzefa Janoowalla
Correct answers are hidden.
Score for this quiz: 3
out of 5
Submitted 31 Aug at 10:23
This attempt took 13 minutes.
1 / 1 pts
Question 1
A credit reporting agency offers new business customers the first personal
credit check for free if they guarantee “up front” that they will pay $100 for a
second credit check..
Shasta Inc. agrees to these terms on July 1, conducts its first credit check,
and pays nothing. On that date, the agency records a transaction that
includes an increase in:
a deferred asset account of $50. a deferred asset account of $100. a deferred liability account of $50. a deferred liability account of $100. 1 / 1 pts
Question 2
One day later, Shasta conducts its second credit check and pays the agency
$100. On that second day, the agency records a transaction that includes:
a credit to Revenue of $100. a credit to Revenue of $50.
10/3/23, 6:19 PM
Umehani Huzefa Janoowalla's quiz history: 08.31 Ch 06 - 2
https://canvas.uh.edu/courses/3807/quizzes/58777/history?version=1
2/3
a debit to Revenue or Expense of $100. a debit to Revenue or Expense of $50. 1 / 1 pts
Question 3
After the agency records the second transaction, the balance in the agency’s
deferred asset or liability account is:
$50. $100. $0. None of the above is true. 0 / 1 pts
Question 4
Incorrect
Incorrect
The agency starts to include “advice about improving the credit worthiness
of customers” in each transmission of a credit check. The advice is simply
included in the email message that transmits the results of each credit
check.
The agency estimates that 10% of the overall $100 value of its offer can be
attributable to the value of this advice. Because of this new term, the dollar
amount in your answer to question #1 (above) will be:
greater. less. the same.
10/3/23, 6:19 PM
Umehani Huzefa Janoowalla's quiz history: 08.31 Ch 06 - 2
https://canvas.uh.edu/courses/3807/quizzes/58777/history?version=1
3/3
None of the above is true. Because of this new term, the first transaction
would not occur.
0 / 1 pts
Question 5
Incorrect
Incorrect
Once the two credit checks are completed, Shasta shifts from “new
customer” status to “standard customer” status. If Shasta prepays for a
credit check but never actually orders and receives the service, the agency:
must refund the prepayment. must maintain the deferred revenue liability on its balance sheet indefinitely. will eventually write off the liability and recognize “normal” Customer Service
Operating Revenue.
will eventually write off the liability and recognize “expired” Account Non-
Operating Revenue.
Quiz score: 3
out of 5
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