Answer:
- The adjustment causes an increase in an asset account and an increase in a revenue account.
- Accounts receivable is usually increased when accruing revenues.
- They refer to revenues that are earned in a period, but have not been received and are unrecorded.
- They refer to earnings which have been earned but not yet billed.
Explanation:
Accrued revenue refers to cash earned for selling a good or delivering a service yet the cash has not been received and the transaction was not recorded in the books as revenue. This means that the cash has been earned but it has not been billed to the customer it was earned from.
When the books are being adjusted for this, the accounts receivable - which is an asset account - will increase to show that cash is owed. Revenue will also increase as this was cash earned from delivering a good or service.
Answer:
When sending an email cover letter, it's even more important to be concise. The first paragraph is what readers pay attention to when reading an email. The rest of the message is typically skimmed.
<h3>Hello there!</h3>
Your question asks what order does a activity-based costing system work by.
<h3>Answer: b, c, a, d</h3>
The order:
1. b). Identify activities and estimate their total indirect costs.
2. c). Identify the allocation base for each activity and estimate the total quantity of each allocation base.
3. a). Compute the predetermined overhead allocation rate for each activity.
4. d). Allocate indirect costs to the cost object.
The reason why the answer choice "b, c, a, d" is the correct answer because that's the correct order for the activity-based costing system.
The activity-based costing system first identifies the activities that are going on and find the indirect cost, then identifies the allocation base for the activities that are occurring to find the quantity of the allocation base, then solve the pre-determined rate of allocation for each activity, and finally get the indirect cost for the object.
<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
