I believe your answer is A: Unearned Revenue.
Because, if a business has received cash, in advance of services performed, and credits a liability account, the adjusting entry needed, after the services are performed, will be debit Unearned Revenue and credit Cash.
The answer would be C. Investment
Answer:
Revenue that has been earned by the end of December is $ 140,000
Explanation:
When entity uses the accrual method of accounting, the transaction is recorded as and when it occurs.
The subscription revenue received relates to services to be rendered over 12 months. Therefore the Revenue is recognised as magazines are issued over - time.
<em>From the first issue June to end of December , there exists 7 issues of magazines.</em>
Revenue to be recognised = $240,000 × 7/12
= $ 140,000
Answer:
no cash was collected during the period
or
cash collections during the year are less than the amount of revenue recognized
Explanation:
For example if we had Accounts receivable beginning balance $ 250,000 and Sales of $ 500,000 are made on accounts then the Total Accounts receivable will be $ 750,000.
But out of the $ 500,000 sales only $300,00 cash is collected and the remaining $ 200,000 is still in the Accounts receivable balance so the ending Accounts receivable balance will be $ 250,000 + $200,000 = $ 450,000 which will be greater than beginning Accounts receivable balance.
So there are two possibilities either cash collections during the year are less than the amount of revenue recognized.
or
no cash was collected during the period.
Similarly it cannot be choice no 1 : collections during the period exceed the amount of revenue recognized
Because if more cash is collected then ending account receivable balance would be less than the beginning account receivable balance.
Choice no 3 is also wrong if cash collections are more than the ending accounts receivable balance would be less
Answer:
well in society today as corona virus grows so do prices which makes it harder for people to buy things they used to. Companies are starting to shut down do to people not being able to buy anything or not being able to afford things or the product is bad. Do to all of this companies are failing tho some are using this to their advantage and are thriving.
Explanation:
hope this helps
