When should companies that sell gift cards to customersreport revenue?a. When the gift card is issued and cash is received.b. When the gift card is used by the customer.c. At the end of the year in which the gift card is issued.d. None of the above.

Q: Which of the following statements, if any, is O Under the cash receipts method, income is not…

A: Accrual Method of Accounting: Under this method, transactions are recorded as and when they accrue,…

Q: In which journal would the payment of salaries be posted? a.cash receipts journal b.special journal…

A: Journal entry for Payment of salaries:   Salaries A/c   To Cash A/c ( Being salaries paid )   As per…

Q: Show effects of the above transactions on the accounting equation using the following format.…

A: Assets = Liabilities + Equity

Q: Classic Customs began operations on December 1, 2020. In setting up the bookkeeping procedures, the…

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

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 does not affect the current liabilities section of the balance sheet? Select…

A: Current liabilities mean the obligation amount that is not paid to the creditors and suppliers yet…

Q: 1. How much will the Uncollectible account expense for the year be? 2. What will the final balance…

A: There are many methods for the calculation of the Uncollectible expense , Generally these are…

Q: Identify the group of accounts that are NOT SHOWN IN THE DEBIT COLUMN of the Trial Balance. O a.…

A: Ledger balances square measure sequestered into debit balances and credit balances. Quality and…

Q: Which of the following liabilities is created when a company receives cash for services to be…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Which of the following does not affect the current liabilities section of the balance sheet?   a.…

A: Current  liabilities  are liabilities  payable with  in 12 months  or normal operating  cycle…

Q: A. You are provided with the following information form the accounts of BBS Ltd for the year ending…

A: Deferred Tax arises as a result of difference between Accounting profits and Taxable profits.

Q: What is the adjusting entry for the doubtful accounts expense for the current year? 2. What is the…

A: Allowance method refers to record expected bad debts that can be generated from credit revenue of…

Q: Suppose that at the end of the year there is an outstanding note receivable. The adjusting entry to…

A: 1. Accounting Equation - The accounting Equation is calculated using the following equation - Assets…

Q: Is this true or false? When recording a cash transaction from a client for a service that will be…

A: Unearned revenue is a liability for which services are yet to be provided in the near future.

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: If you offer gift cards to clients, when should you record your revenue

A: According to the revenue recognition policy, the timing of recording income in the books must be…

Q: The questions to be answered are: Fiona Sporty uses a purchases journal, a cash payments journal, a…

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

Q: salary to an employee just hired b. Setting up of chart of accounts c. Payment of rent in advance

A: The correct answer is  b). Setting up of chart of accounts

Q: Tomi See, CPA, has billed her clients for services performed. She subsequently receives payments…

A: Journal Entry to be passed on receipt of payment against services provided on account   Account…

Q: Conceptual Connection: For each situation, indicate when the company should recognize revenue on an…

A: The company should recognize of revenue in the month of December.

Q: Which account would be credited when closing the account for rent expense for the year? Prepaid…

A: Prepaid Rent - It is the amount of rent paid in advance for the next year .  Rent Expense - It is…

Q: Which of the following is a liability created when a company receives cash for services to be…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: Harvest Catering is a local catering service. Conceptually, when should Harvest recognize revenue…

A: Revenue recognition is a process to record revenue. Revenue is to be recognized only when the…

Q: Which of the following situations violates the matching principle? Some of the amount that was paid…

A: A one year insurance policy is purchased partway through the year; Full payment is recorded as…

Q: If Dome Corporation does not record a sale made on account in December until a month later when the…

A: Sales on account is nothing but credit sales, i.e., the sales made to customers on credit terms.…

Q: Disclosure Note 2 discusses Target’s accounting for gift card sales. Does Targetrecognize revenue…

A: Revenue:   It refers to the earnings of the business from their normal business operations. This…

Q: How does receiving a utility bill to be paid next month affect the accounting equation?

A: Accounting equation: Assets = Liabilities + Stockholders' equity

Q: When does a company recognize revenue for a sale of a gift card?

A: Gift card: Prepayment which is made by the customer for the future purchase is known as a gift card.…

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 the following would not be recorded as an identifiable accounting transaction? Multiple…

A: For recording any accounting transaction, there must be a financial transaction involved.

Q: Allowance for Uncollectible Accounts is a contra asset account, which means that its normal balance…

A: The questions here pertain to contra asset accounts. Note that contra asset accounts are those…

Q: Pass Journal entries in the books of the company assuming that all allotment money was received and…

A: Application money on 4000 Shares 4000 * 3 12000 Due towards application 2000 * 3 6000 Excess…

Q: What does the phrase "Revenue is recognized at the point of sale" mean? (Assume the company reports…

A: Accrual Basis of Accounting: The accrual basis of accounting is a method of accounting where the…

Q: the following w

A: the correct answer is  d. SALES INVOICES

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: On the 11 of July a customer cash good payment for the first third of the month of July. On the 18,…

A: Journal entries are defined as recording of the business transactions into the books of company and…

Q: If a credit sale is made to a New customer, and the amount due is received before the year ends,…

A: Sales made on cash or credit both are recorded as sales from the beginning of the transaction and…

Q: Which of the following account is not a temporary account while closing all temporary accounts In…

A: Temporary accounts in closing process includes accounts like all the revenues and expenses…

Q: Required Given that prudence is the main consideration, discuss under what circumstances, if any,…

A: Accrual Basis of accounting refers to the accounting, where the transactions are recorded as and…

Q: Phone companies bill their customers after they provided them with cellular service. So if a…

A: So basically there are two concepts regarding this from accounting perspective:Deferred…

Q: Cero company collected an account receivable from a customer whose account has been written off in…

A: Solution: To reinstate of accounts receivables previously written off, accounts receivables debited…

Q: At the time of the event, which of the following does not result in a journal entry and an update of…

A: A general ledger is one of the basic foundations of any company's double-entry accounting system…

Q: At year-end, the president instructs you, the financial officer, not to record accrued expenses…

A: As per the matching principle, all expenses for a particular period should be expenses in that…

Q: Which of the following is the entry to be recorded by alaw firm when it receives a payment from a…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Is "purchased an old motor car for office and paid by cheque" a contra entry ?

A: When a debit and credit influence the same parent account, resulting in a net-zero effect on the…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.