Financial Accounting: - Which element triggers recognition of unearned subscription revenue as earned? a) When cash is collected b) Passage of time as service is provided c) At contract signing date d) When renewal period begins

Financial Accounting: - Which element triggers recognition of unearned subscription revenue as earned? a) When cash is collected b) Passage of time as service is provided c) At contract signing date d) When renewal period begins

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 2MC: A contract between one or more parties creates: a. the date that cash is paid by the customer b....

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Financial Accounting: -
Which element triggers recognition of unearned subscription
revenue as earned?
a) When cash is collected
b) Passage of time as service is provided
c) At contract signing date
d) When renewal period begins

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2 3 1 4 5 7 8 9 10 12 Depreciation Expense Accumulated Depreciation Uneamed Revenue Services Revenue Insurance Expense Prepaid Insurance Salaries Payable Cash Prepaid Rent Cash Salaries Expense Salaries Payable Interest Receivable Interest Revenue Cash Accounts Receivable (from consulting) Cash Unearned Revenue Cash Interest Receivable Rent Expense Prepaid Rent Interest Expense Interest Payable 1,400 4,300 3,300 4,500 2,000 3,700 5,400 4,900 9,000 6,000 3,000 1,700 1,400 4,300 3,300 4,500 2,000 3,700 5,400 4,900 9,000 6,000 3,000 1,700
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