College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Question
Chapter 11, Problem 5A
To determine
Explain the situation, if a business spent the cash it received in advance for services to perform at a later date.
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Why are payments received from customers in advance, for either services to be performed and/or for goods to be delivered, classified as liabilities upon the receipt of the funds?
Which of the following is a liability created when a company receives cash for services to be provided in the future? Select one:
a. Unearned revenue b. Estimated warranty payable c. Service revenue d. Accrued liability
Money received from customers for products to be delivered in the future is recorded as: A . revenue and an asset
Chapter 11 Solutions
College Accounting (Book Only): A Career Approach
Ch. 11 - Which of the following is the adjusting entry for...Ch. 11 - The adjusting entry for unearned revenue pertains...Ch. 11 - An account that has unearned in its name is...Ch. 11 - This type of inventory system does not require an...Ch. 11 - The Supplies account has a 1,400 balance. A...Ch. 11 - Prob. 6QYCh. 11 - Prob. 7QYCh. 11 - What is a physical inventory? What does the word...Ch. 11 - Prob. 2DQCh. 11 - Using the perpetual inventory system, what account...
Ch. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Why is it necessary to adjust the Merchandise...Ch. 11 - A merchandising company shows 8,842 in the...Ch. 11 - Prob. 8DQCh. 11 - For the university football programs Unearned...Ch. 11 - On October 31, the Vermillion Igloos Hockey Club...Ch. 11 - Basga Company uses the periodic inventory system....Ch. 11 - Indicate the work sheet columns (Income Statement...Ch. 11 - Journalize the required adjusting entries for the...Ch. 11 - On December 31, the end of the year, the...Ch. 11 - On December 31, Marchant Company took a physical...Ch. 11 - The trial balance of Hadden Company as of December...Ch. 11 - The balances of the ledger accounts of Beldren...Ch. 11 - Prob. 3PACh. 11 - Here are the accounts in the ledger of Mishas...Ch. 11 - A portion of Anderson Publishings work sheet for...Ch. 11 - The trial balance of Jillson Company as of...Ch. 11 - The balances of the ledger accounts of Pelango...Ch. 11 - Prob. 3PBCh. 11 - The accounts and their balances in the ledger of...Ch. 11 - A portion of Johnsons Farm Supply work sheet for...Ch. 11 - BURTS BEES, Durham, North Carolina Burts Bees...Ch. 11 - Prob. 2ACh. 11 - Prob. 3ACh. 11 - Prob. 4ACh. 11 - Prob. 5ACh. 11 - Adjusting Entries Two months (July and August)...
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Similar questions
- Which of the following is considered or construed as an example of "constructive receipt"? a.Retirement benefits, pensions, gratuities b.Deposits for rentals to answer for damages, restricted as to use c.Interest coupons that have matured and are payable but have been cashed d.Fees paid to a public officialarrow_forwardThe cash received in advance before delivering a product or performing a service is called unearned revenue.arrow_forwardIs this true or false? When recording a cash transaction from a client for a service that will be supplied in a future period, a debit is made to an unearned revenue account.arrow_forward
- Select one of the following short-term (current) liabilties and describe some of the accounting requirements for recognizing/accounting for it: Accounts Payable Notes Payable Payroll Contingent Liabilites Then describe how working capital, current ratio and quick ratio can be useful in making economic decisions. Who would be making these decisions?arrow_forward1. What do you call to the evidence of receipt of cash by the seller? 2. What do you call to the one that describe the amounts and timing of payments that the buyer agrees to make in the future?arrow_forwardWhat are some of the accounting applications that incorporate the time value of money into valuation?arrow_forward
- What is the time value of money? Why should accountantshave an understanding of compound interest,annuities, and present value concepts?arrow_forwardWhich of the following is an example of revenue or expense to be recognized in the current period’s income statement? A)Cash received from a client before the service is provided B)Inventory purchased for sale to customers C)Cost of utilities used during the period D)Cash collected from an account receivablearrow_forwardHow can we estimate the profits (more precisely, the cash nows) that the assets will generate during its service?arrow_forward
- What business circumstance could produce a short-term notes payable created from a loan?arrow_forwardA contract between one or more parties creates: a. the date that cash is paid by the customer b. enforceable rights and obligations for the parties c. revenue for recognition d. the fixed amount of payments for the good or servicearrow_forwardIn simpler terms, revenue is the inflow of cash or accounts receivable that a business receives when it provides goods or services to its customers. Describe in detail.arrow_forward
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