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sdas [7]
3 years ago
14

In a deferral adjustment for revenues collected in advance that are now earned, ______. a) the liability recorded when cash was

received is decreased by the adjustment for the revenue being earned b) a liability is increased because cash will be paid for an expense in the future the liability recorded c) when cash was received is increased by the adjustment for the revenue being earned d) a liability is decreased because cash is being paid for an expense incurred at the time of the adjustment
Business
1 answer:
frosja888 [35]3 years ago
8 0

Answer:

a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned

Explanation:

When cash is received for revenue yet to be earned, it is called deferred revenue. The entries posted at this point is a Debit to Cash (an increase in cash balance) and a Credit to Deferred revenue (a liability account). When the revenue gets earned, it get recognized with a Debit to Deferred revenue (to reduce the liability as the obligation has been fulfilled resulting in revenue being earned) and a Credit to Revenue (P/L).

Hence, the right option is a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned.

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To maximize profit, a perfectly competitive firm:_____.
dmitriy555 [2]

Answer:

D

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

Profit is maximised where marginal cost equals marginal revenue.

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2 years ago
Sheila owns a childcare business. Since this market is competitive, she has hired an advertising and sales manager to make sure
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Answer:

The correct answer is: marketing expenses.

Explanation:

To begin with, the marketing expenses are those that the company must make in order to obtain a marketing program done such as publicity campaigns. Moreover, this type of expenses include every payment that the company would consider as marketing investment that can improve the development of the organization an its sales to the target audience, therefore that both the materials and the salaries whose goal is to create a marketing campaign will be consider and classified as marketing expenses.  

7 0
3 years ago
Read 2 more answers
Atlas Home Supply has paid a constant annual dividend of $2.40 a share for the past 15 years. Yesterday, the firm announced the
Iteru [2.4K]

Answer:

The current value per share is $25.51

Explanation:

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Therefore, The current value per share is $25.51

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3 years ago
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Answer and Explanation:

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b) If the trip to home cost $490 and staying cost $550, then Kristen can deduct $490.

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3 years ago
Please post detailed answers to the following questions. Please use complete sentences.
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