Question

Which of the following requires a credit? Multiple Choice Decreases in liabilities Decreases in stockholders' equity Increases to assets Increases to liabilities 2. true or false Under the five-step revenue recognition model, a contract can be written, verbal, or implied. 3.When cash is received in advance of a performance obligation being satisfied, a(n) ______ called _________ is recorded.

Answer 1

Solution 1:

Liabilities are having normal credit balance, therefore increase to liabilities requires a credit.

Hence last option is correct.

Solution 2:

True, Under the five-step revenue recognition model, a contract can be written, verbal, or implied.

solution 3:

When cash is received in advance of a performance obligation being satisfied a (n) advance called unearned revenue is recorded.