College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Chapter 11, Problem 5DQ
To determine
Explain unearned revenue and why it is treated as a liability.
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Why is Unearned Revenue considered a liability?
Discuss, using practical example how revenue expenditure should not be capitalized?
Which among the following suits best for Unearned revenue?
a.
Liability
b.
Expense
c.
Revenue
d.
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 - Prob. 1ECh. 11 - On October 31, the Vermillion Igloos Hockey Club...Ch. 11 - Basga Company uses the periodic inventory system....Ch. 11 - Prob. 4ECh. 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 - Prob. 1CP
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What is the authoritative literature addressing revenue recognition when right of return exists?arrow_forwardWhat is unearned revenue? Why is it considered a liability? Does unearned revenue impact both the Balance Sheet and the Income Statement? Explain.arrow_forwardWhen should revenue be recognised? Are there exceptions to the general rule?arrow_forward
- state the differences between unearned revenue and accounts payable? both accounts are liabilities therefore what is the normal balance of liability and does it matter?arrow_forwardexplain how accounting profit and taxable profit differ.arrow_forwardWhat must a contract include for the contract to exist for purposes of revenue recognition?arrow_forward
- How does the revenue-expense approach differ from the asset-liability approach fordefining accounting elements?arrow_forwardTRUE OR FALSE? Interest revenue need not be added to the gross income to compute for the total income.arrow_forwardDoes the deductibility of an expense or loss follow accounting practice?arrow_forward
- What are Revenue Recognition and Matching Principles?arrow_forwardHow does unearned revenue arise? Why can it be classifiedproperly as a current liability? Give several examplesof business activities that result in unearned revenues.arrow_forwardThe practice of recording advance payments from customers as a liability is an example of applying the O Going concern assumption. O Monetary unit assumption. O Historical cost principle. Revenue recognition principle.arrow_forward
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