Explain thoroughly why it is the answer. Which of the following situations may give rise to unearned revenue?Providing trade credit to customers.Selling inventory.Selling magazine subscriptions.O Providing manufacturer warranties.Clear

The Unearned revenue is the cash received feom customers but services would be provided in the…

Answered: Which of the following situations may…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 1MC: Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory...

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Similar questions

At what point does revenue recognition occur? A. When the purchase order is received B. When the seller receives the money for the job C. When the seller has met performance D. When the purchaser makes payment
A company regularly purchases materials from a manufacturer on credit. Payments for these purchases occur within the companys operating cycle. They do not include interest and are established with an invoice outlining purchase details, credit terms, and shipping charges. Which current liability situation does this best describe? A. sales tax payable B. accounts payable C. unearned revenue D. income taxes payable
What accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts receivable, merchandise inventory B. accounts payable, merchandise inventory C. accounts payable, cash D. sales, accounts receivable
Which of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory C. sales discounts D. accounts payable
What specific accounts are recognized when a business purchases equipment on credit?
Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade credit to customers. b. Selling inventory. c. Providing manufacturer warranties. d. Selling magazine subscriptions.
When should revenue from the sale of merchandise normally be recognized? (Assume the company reports using ASPE.) a.When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. b.When the customer pays for the merchandise. c.Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. d.When the customer takes possession of the merchandise.
Which of the following represents amounts owed for goods, supplies, or services purchased? Group of answer choices customer-related payable accounts payable liability for compensated absences bonds payable
When should revenue from the sale of merchandise normally be recognized? A)When the customer takes possession of the merchandise. B)When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. C)Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. D)When the customer pays for the merchandise.
FAST The recording of a product warranty expense in the year the merchandise under warranty is sold is supported by the a. Business entity concept b. Matching principle c. Recognition principle d. Realization principle
Required Given that prudence is the main consideration, discuss under what circumstances, if any, revenue might be recognized at the following stages of a sale. (a) Goods have been acquired by the business, which it confidently expects to resell very quickly.(b) A customer places a firm order for goods.(c) Goods are delivered to the customer.(d) The customer is invoiced for goods.(e) The customer pays for the goods. (f) The customer’s cheque in payment for the goods has been cleared by the bank.

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Which of the following situations may give rise to unearned revenue? O Providing trade credit to customers. O Selling inventory. O Selling magazine subscriptions. OProviding manufacturer warranties.