Answered: 2. Unearned or deferred revenue can…

2. Unearned or deferred revenue can occur when a. services provided prior to receipt of cash b. goods are sol on account c. services are provided after the receipt of cash d. goods are sold for cash

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 35MC: Unearned service revenue occurs when which of the following occurs? A. company receives cash from a...

See similar textbooks

Related questions

Q: What account will not be found in the trial balance of a company using cash basis of accounting? *…

A: As per the cash basis of accounting the transaction is recorded at the time of inflows or outflows…

Q: The accounts of customers who have not yet made payment for the goods or services are called: O a.…

A: Accounting indicates to a system which helps the corporation in identifying the daily…

Q: Which of the following is true of unearned revenue? It is a liability account that is increased when…

A: Unearned revenue is simply cash received in advance. Advance cash is received when services have…

Q: The closing balance of the petty cash book is considered as ___________________ Select one: A.…

A: It is the record of petty expenses sorted of date. Generally, it is a real ledger and part of…

Q: The revenue should be recognized by the company once the cash is collected. False True

A: This question deals with the revenue recognition principle. Revenue is a cash/other consideration…

Q: Which statement about accrual basis of accounting is incorrect? * A. Accrual accounting adheres to…

A: In accrual-based accounting, accounts on a balance sheet reflect liabilities and non-cash-based…

Q: It is an amount owed to suppliers for goods purchased or services performed on credit. O a. Accounts…

A: Accounts payable is credited when goods are purchased on credit. Unearned revenue is when cash is…

Q: Using accrual accounting, revenue is recorded and reported only a.when the services are rendered…

A: As per Accrual Basis of Accounting, revenues and expenses are recorded as and when they incur…

Q: Using accrual accounting, expenses are recorded and reported only a.when they are incurred, whether…

A: Under Accrual system of accounting, expenses are recorded in the books of account as they are…

Q: Identify whether a debit or credit results in the indicated change for each of the following…

A: Unearned Revenue: Unearned Revenue refers to the revenue earned by the company but the goods or…

Q: 1. The revenue recognition concept a. Determines when revenue is credited to a revenue account. b.…

A: Accounting principle: These are the guidelines which are to be applied while preparing the…

Q: TRUE or FALSE Revenue should be recorded in the period it is earned, regardless of the time the cash…

A: It is true or false questions.

Q: Which of the following is recorded in the cash receipts journal?

A: Answer: Option C

Q: 1. Which statement about accrual basis of accounting is incorrect? A. Accrual accounting adheres to…

A: The accrual basis of accounting records the transaction when the transactions occurred, not at the…

Q: Which statement is incorrect? Under cash basis of accounting,

A: Cash basis of accounting: It is a method of accounting adopted by companies where the transactions…

Q: A company receives cash from a customer. The company does not perform the services the customer has…

A: 6) Correct option is 'Liability' Reason :- Journal entry would be :- Cash (Dr)…

Q: True Or False? The entry to record a cash receipt from a customer when the service is to be provided…

A: This statement is False The entry to a record a cash receipt from a customer when the service is to…

Q: Under accrual-basis accounting,sales made on credit are usually reported as: A.liabilities…

A: There are two type of bases used in accounting purpose. One is cash basis of accounting and other is…

Q: Deferred revenues represent liabilities recorded when cash is received from customers in advance of…

A: Adjusting entries:Adjusting entries are the journal entries, which are recorded at the end of the…

Q: How many of the following statements regarding the Revenue Recognition and Matching Principles are…

A: The revenue recognition principle state that organizations should recognize the revenue when the…

Q: Using accrual accounting, expenses are recorded and reported only a.when they are incurred, whether…

A: Under accounting, there are two types of systems that can be used. Cash basis of accounting says…

Q: UNDER THE ACCRUAL BASIS OF ACCOUNTING, IF CASH IS RECEIVED PRIOR TO THE SALE, THEN: A. REVENUE IS…

A: Under accrual basis of accounting system, revenue is recognised only when it is earned. If the cash…

Q: Cash basis accounting records revenues only when cash is received and expenses only when cash is…

A: Cash basis accounting: It refers to the accounting into which revenues and expenses are only…

Q: Under accrual accounting: Group of answer choices a)Revenue cannot be recognized until cash is…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: What is the EFFECT on accounting equation for the transaction "Commission Received OMR 100"? a.…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

Q: Which of the following states that a transaction is not recorded in the books of accounts unless it…

A: The accounting system is based on various accounting principles.

Q: When converting from cash basis to accrual basis accounting, which of the following adjustments…

A: Cash receipts from customers under cash basis of accounting includes receipts collected from…

Q: Under the accrual basis of accounting, cash receipts and disbursements may _____ the period in which…

A: Accrual system of accounting is one where expenses and incomes are recorded in P/L statement as and…

Q: Question 36 is used to settle an obligation arising from purchase of goods or services as a…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: A revenue account is closed by debiting Income Summary and crediting Service Revenue. True or False

A: A major step in the accounting cycle that must not be skipped by any company is the closing process.…

Q: ce revenue that are not yet received in cash are recorded as follows: Group of answer choices Debit…

Q: Under the cash basis of accounting: expenses are matched with the revenue that is produced. cash…

A: Under the cash basis of accounting cash must be received before revenue is recognized.

Q: A company records cash received from clients in advance for legal services in Unearned Revenue. If…

A: Adjusting entry means where some adjustment need to be made at the end of specified period for…

Q: Which of these transactions requires a credit entry to Revenue? A. received cash from services…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Under accrual accounting, when are revenue and expenses recognized? Revenue is recognized when cash…

A: Under the accrual basis of accounting, revenue is considered to have been earned when goods are sold…

Q: The revenue recognition principle states that revenue should be recorded in the same period as the…

A: Revenue recognition principle states that the revenue should be recorded in the same period as the…

Q: 6. Under the accrual basis of accounting, cash receipts and disbursements may _____ the period in…

A: At the purpose once exchanges area unit recorded within the books of records as they happen despite…

Q: Based on the accrual accounting rule, the revenue is recognized when ___________ and the expense is…

A: Accrual based accounting method record revenue and Expense when the transaction is incurred rather…

Q: COVID Company recognizes revenue in the period in which the account receivable is collected in cash,…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: Under accrual accounting, revenue is recorded and reported only Group of answer choices A. when cash…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: hich one of the following statements about revenue is not correct? A. Revenue can result in…

A: Revenue is the amount of money earned on account of sale of goods or rendering of services.

Q: Which sentence is incorrect? Select one: a. Cash-basis accounting is not in accordance with…

A: Accounting principles are rules and regulations that are followed in the preparation of fair and…

Q: 2. Unearned or deferred revenue can occur when a. services are provided prior to receipt of cash…

A: Under the new IFRS 15, the main focus changes from the income statement to the balance sheet, the…

Q: Which of the following statements is characteristic of accrual basis accounting? Expenses are…

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…

Question

2. Unearned or deferred revenue can occur when

a. services provided prior to receipt of cash

b. goods are sol on account

c. services are provided after the receipt of cash

d. goods are sold for cash

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

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

Which of the following is not a criterion to recognize revenue under GAAP? A. The earnings process must be completed. B. A product or service must be provided. C. Cash must be collected. D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process.
Revenue earned but not yet collected is an example of which of the following? A. accrued expense B. accrued revenue C. deferred expense (prepaid expense) D. deferred revenue (unearned revenue)
Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. expense now, pay now B. expense later, pay now C. expense now, pay later
Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. earn now, collect now B. earn now, collect later C. earn later, collect now
Which of these transactions requires an adjusting entry (debit) to Unearned Revenue? A. revenue earned but not yet collected B. revenue collected but not yet earned C. revenue earned before being collected, when it is later collected D. revenue collected before being earned, when it is later earned
The cash received in advance before delivering a product or performing a service is called unearned revenue.
Unearned service revenue occurs when which of the following occurs? A. company receives cash from a customer before performing the service B. company pays cash before receiving a service from a supplier C. company pays cash after receiving a service from a supplier D. company receives cash from a customer after performing a service
Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods? A. accrual basis accounting B. cash basis accounting C. tax basis accounting D. revenue basis accounting
2. Unearned or deferred revenue can occur when a. services are provided prior to receipt of cash b. goods are sold on account c. services are provided after the receipt of cash d. goods are sold for cash
UNDER THE ACCRUAL BASIS OF ACCOUNTING, IF CASH IS RECEIVED PRIOR TO THE SALE, THEN: A. REVENUE IS RECOGNIZED WHEN THE CASH IS RECEIVED. B. A LIABILITY IS RECOGNIZED WHEN CASH IS RECEIVED. C. A LIABILITY IS REMOVED FROM THE SYSTEM WHEN THE CASH IS RECEIVED. D. REVENUE IS REMOVED FROM THE SYSTEM WHEN THE SERVICES HAVE BEEN PERFORMED OR THE GOODS HAVE BEEN DELIVERED.
Under accrual accounting, revenue is recorded and reported only Group of answer choices A. when cash is received without regard to when the services are rendered. B. when cash is received at the time services are rendered. C. if cash is received after the services are rendered. D. when the services are rendered without regard to when cash is received.
True or False: Under the accrual accounting method, revenue is recognized when cash is received, regardless of when the goods or services are delivered.