OPTION: Are liabilities
EXPLANATION:
Amounts received in advance from customer are liabilities because it is not earned yet. It requires certain obligations to be fulfilled in future. It will constitute revenue once the it is earned.
Amounts received in advance from customers for future products or services: Multiple Choice o Are revenues. o Incre...
9) Amounts received in advance from customers for future products or services: A) Are liabilities. B) Are revenues C) Require an outlay of cash in the future. D) Increase income. E) Are not allowed under GAAP 10) If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be journalized as: A) Debit Unearned Revenue, credit Cash. B) Debit Unearmed Revenue, credit Sales. C) Debit Cash, credit Ticket sales payable. D) Debit...
Unearned revenues are generally Multiple Choice 0 Liabilities created when a customer pays in advance for products or services before the revenue is earned. 0 Revenues that have been earned and received in cash. 0 Revenues that have been earned but not yet collected in cash 0 Increases to owners' capital
Multiple Choice Question 12 Accounts payable typically arise because cash is received from a customer that will be paid back in the future cash is received from customers prior to the rendering of services or delivery of products. the firm temporarily borrows cash for operations amounts are owed to others for goods, supplies, and services purchased on onen account
Multiple Choice Question An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400 had been eamed Demonstrate what the correct adjusting entry should include by choosing the correct statement below.
When the amount of revenue collected in advance decreases during an accounting period: Multiple Choice Accrual-basis revenues exceed cash collections from customers. Accrual-basis net income exceeds cash-basis net income. Accrual-basis revenues are less than cash collections from customers. May exceed, equal or be less than cash payments to suppliers.
Accrued revenues: Multiple Choice At the end of one accounting period result in cash receipts in a future period. At the end of one accounting period often result in cash payments in the next period. Are also called unearned revenues. Are recorded at the end of an accounting period because cash has already been received for revenues earned. Are listed on the balance sheet as liabilities.
Bob's Cleaning Services performs services for its customers during March. Payments for the March services are received in June. How does the transaction for the collection of cash from customers WA affect the accounting equation of Bob's Cleaning Services? A. assets increase and revenues increase B. assets increase and equity decreases C. total assets remain the same D. liabilities increase and assets increase
Jack's Snow Removal Company received a cash advance of $10,200 on December 1, Year 1 to provide services during the months of December, January, and February. The year-end adjustment on December 31, Year 1, to recognize the partial expiration of the contract will Multiple Choice increase stockholders's equity by $3,400 increase assets by $3,400 Increase liabilities by $3,400 Multiple Choice increase stockholders's equity by $3,400 increase assets by $3,400 increase liabilities by $3,400 increase assets by $3,400 and increase stockholders's...
3 8 01:20:37 Required information [The following information applies to the questions displayed below.) The following transactions occurred during July 1. Received $1,700 cash for services performed during July 2. Received $8,150 cash from the issuance of common stock to owners. 3. Received $850 from a customer as payment for services performed during June. 4. Biled $4,850 to customers for services performed on account in July. 5. Borrowed $3,400 from the bank and signed a promissory note. 6. Received $2,350...
E. None of the above 6. Received $2,000 cash from customers for services performed A. Assets Increase; Liabilities Increase B. Assets Increase; Equity Increases C. Assets Increase; Assets Decrease D. Liabilities Increase; Equity Decreases E. None of the above L:11 for utilities due in two weeks