College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Question
Chapter 11, Problem 5A
To determine
Explain the situation, if a business spent the cash it received in advance for services to perform at a later date.
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Students have asked these similar questions
Which of the following shows how the event “collected cash for services to be rendered in the future” affects a company’s financial statements?
Which of the following is an example of revenue or expense to be recognized in the current period’s income statement?
A)Cash received from a client before the service is provided
B)Inventory purchased for sale to customers
C)Cost of utilities used during the period
D)Cash collected from an account receivable
_______________liabilities is created when a company receives cash for services to be provided in the future?
Chapter 11 Solutions
College Accounting (Book Only): A Career Approach
Ch. 11 - Which of the following is the adjusting entry for...Ch. 11 - The adjusting entry for unearned revenue pertains...Ch. 11 - An account that has unearned in its name is...Ch. 11 - This type of inventory system does not require an...Ch. 11 - The Supplies account has a 1,400 balance. A...Ch. 11 - Prob. 6QYCh. 11 - Prob. 7QYCh. 11 - What is a physical inventory? What does the word...Ch. 11 - Prob. 2DQCh. 11 - Using the perpetual inventory system, what account...
Ch. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Why is it necessary to adjust the Merchandise...Ch. 11 - A merchandising company shows 8,842 in the...Ch. 11 - Prob. 8DQCh. 11 - For the university football programs Unearned...Ch. 11 - On October 31, the Vermillion Igloos Hockey Club...Ch. 11 - Basga Company uses the periodic inventory system....Ch. 11 - Indicate the work sheet columns (Income Statement...Ch. 11 - Journalize the required adjusting entries for the...Ch. 11 - On December 31, the end of the year, the...Ch. 11 - On December 31, Marchant Company took a physical...Ch. 11 - The trial balance of Hadden Company as of December...Ch. 11 - The balances of the ledger accounts of Beldren...Ch. 11 - Prob. 3PACh. 11 - Here are the accounts in the ledger of Mishas...Ch. 11 - A portion of Anderson Publishings work sheet for...Ch. 11 - The trial balance of Jillson Company as of...Ch. 11 - The balances of the ledger accounts of Pelango...Ch. 11 - Prob. 3PBCh. 11 - The accounts and their balances in the ledger of...Ch. 11 - A portion of Johnsons Farm Supply work sheet for...Ch. 11 - BURTS BEES, Durham, North Carolina Burts Bees...Ch. 11 - Prob. 2ACh. 11 - Prob. 3ACh. 11 - Prob. 4ACh. 11 - Prob. 5ACh. 11 - Adjusting Entries Two months (July and August)...
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Similar questions
- The cash received in advance before delivering a product or performing a service is called unearned revenue.arrow_forwardMoney received from customers for products to be delivered in the future is recorded as: A . revenue and an assetarrow_forwardThe cash basis of accounting records revenues and expenses when the cash is exchanged, while the accrual basis of accounting a.records revenues when cash is received and expenses when they are incurred b.records revenues and expenses when they are incurred c.records revenues when they are earned and expenses when they are paid d.records revenues and expenses when the company needs to apply for a loanarrow_forward
- Is this true or false? When recording a cash transaction from a client for a service that will be supplied in a future period, a debit is made to an unearned revenue account.arrow_forwardIt is the amount collected by the business in advance from the customers before the business actually provide the goods or services to the customers. a. Bank overdrafts b. Outstanding expenses c. Accounts payable d. Unearned revenuesarrow_forwardUnder accrual accounting, when should expenses be matched against revenue? after cash is collected from the customer in the same period as the revenue they helped generate before the earnings process is complete after payment for any costs related to the revenuearrow_forward
- Which of the following is not a question that can be answered with the cash flow statement?A. How much cash did the business spend or receive in investing activities for the accounting period?B. How much inventory does the business have on hand at the end of the accounting period after cash purchases?C. What was the cash movement for the accounting period? D. How much cash was provided or used by the business’s operating activities for the accounting period?arrow_forwardOperating cash flows would include which of the following? a. Repayment of borrowed money. b. Payment for employee salaries. c. Services provided to customers on account. d. Payment for a new operating equipment.arrow_forwardWhen should liabilities for each of the following items be recorded in the accounts of the business entity?(a) Acquisition of goods by purchase on credit (b) Salaries(c) Annual bonus paid to management(d) Dividendsarrow_forward
- Which of the following liabilities is created when a company receives cash for services to be provided in the future? A. Unearned Revenue B. Estimated Warranty Payable C. Accrued Liability D. Accounts Payablearrow_forwardMay I have the statement of cash flow for the business?arrow_forwardWhen an owner withdraws cash or goods from the business, why is this considered an increase to the Drawing account and not an increase to the Wages Expense account?arrow_forward
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