What is meant by the term unearned revenue? Where should an unearned revenue account appear in the financial state-ments? As the work is done, what happens to the balance of an unearned revenue account?

Q: How does accrued but uncollected revenue affect the balance sheet?

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Q: Which of the following accounts is not considered a temporary or nominal account? O service revenue…

A: Nominal Accounts: Nominal Accounts are those accounts which closed at the end of year. for example…

Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…

A: Capital receipts: These receipts are income that is earned from the investment and financing…

Q: What is the authoritative literature addressing revenue recognition when right of return exists?

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: Which of the following is true about the revenue journal? Please explain with full explanation  a.…

A: Revenue means the income which is generated from the business operations in terms of selling goods…

Q: If a payment of a deferred expense was recorded under the alternative treatment, what account would…

A: Deferred expensesAdvance payment for future expenses is called as prepaid expenses. These prepaid…

Q: how to compare between prepaid expenses and unearned revenue?

A: The adjustment for deferred items are made at the end of the year.

Q: Which of the following revenue whose recognition is put off into the future even though payment has…

A: Revenue is the total proceeds from sale of goods or services in the business. This is an important…

Q: On which financial statement do revenues appear?

A: Revenues and expenses are the accounts which are required to compute the Net income earned or net…

Q: When does a consignor typically recognize revenue for a consignment sale?

A: Meaning of Consignment Sale Consignment Sale is refer as the arrangement of trade where the seller…

Q: What transaction requires an adjusting entry debit to unearned revenue

A: Adjusting Entries: Adjusting entries are those which are recorded at the end of the accounting year.…

Q: Is Unearned Revenue recorded in the Trial Balance?

A: Unearned revenue: Un-earned revenue is the term used to refer the revenues not yet earned but the…

Q: How do unearned revenues arise?

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Q: How is unearned revenue classified on the balance sheet?

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Q: How do the asset, revenue and expense accounts differ?

A: The assets and liabilities are posted in the balance sheet that shows the financial position of the…

Q: What type of account is Unearned Revenue?a. Assetb. Liabilityc. Revenued. Expense

A: Unearned revenue: Unearned revenue is also called as prepaid revenue.

Q: At what point revenue does revenue recognition occur

A: Revenue recognition: Revenue recognition refers to an accounting principle that states the specific…

Q: Briefly explain the relationship between assets, liabilities, and revenue.

A: Assets is the tangible or Intangible factor in the business, which can be valued in terms of money…

Q: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: Differentiate the Revenue Cycle and Expenditure cycle

A: The processes of the business are divided into different accounting cycles. The revenue cycle,…

Q: What are Fiscal instrument

A: The instruments used in making the fiscal policy effective and efficient are generally called Fiscal…

Q: transactions that require an adjusting entry (debit) to unearned revenue?

A: Concept introduction:  Adjusting entries are required to adjust the accounts according to the…

Q: According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the…

A: Revenue: It refers to money earned by the business from selling its goods and services to the…

Q: When is revenue recognized in the following situations?(a) Revenue from selling products, (b)…

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Q: Theseransactions which are related to revenue or expense recognition, identify whether they are are…

A: Accruals: Accruals are the revenues that are earned but not received, and expenses that are incurred…

Q: How do modifying entries relate to the difference between cash accrual accounting and the difference…

A: Introduction : All cash transactions must be converted into accrual accounting for adjustment…

Q: How are the balance sheet and income statement affected by fair value accounting?

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Q: When an entity has the benefit of particular service but it has not received the bill (invoice) to…

A: Prepayment: When payment is made in advance before receiving goods or services, then the payment is…

Q: Under the modified accrual basis of accounting, expenditures generally are not recognized until: a.…

A: The modified accrual basis of accounting comprises of cash and accrual basis of accounting.it is a…

Q: Please explain what an Unearned Revenue account is and why an adjustment may be necessary for…

A: The answer for the question on Unearned revenue is discussed hereunder : The Matching Concept in…

Q: Discuss the major principle that describes recording revenues.

A: We have many accounting principles that will guide accountants in recording and reporting financial…

Q: Advanced collections from customers prior to the performance obligation being satisfied is accounted…

A: 1) Advanced collections from customers prior to the performance obligation being satisfied is…

Q: What kind of account is Unearned Revenue?

A: Unearned Revenue is the revenue received in advance. It is the amount of cash received for which…

Q: What are the two most often used ways of accounting for revenue from by-products?

A: When the manufacturing entity is engaged in manufacturing the main product which is the main source…

Q: What type of account is Unearned Revenue?

A: The question deals with what type of account is Unearned Revenue

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.