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Ann [662]
3 years ago
12

All of the following are true regarding deferred revenues except: They are payments received in advance of services performed. T

he adjusting entry for deferred revenues increases assets and increases revenues. The adjusting entry for deferred revenues increases revenues and decreases liabilities. They are liabilities. As they are earned, they become revenues.
Business
1 answer:
pychu [463]3 years ago
7 0

Answer:

The correct answer is letter "C": The adjusting entry for deferred revenues increases revenues and decreases liabilities

Explanation:

Deferred Revenue is accrued payments that a corporation collects for goods or services that it has not yet produced or dispatched. Another term for deferred revenue is unearned revenue. Whereas normal payments for goods or services are recorded as revenue on the company's Income Statement, deferred revenue is recorded as a liability until the product is shipped.

For accounting purposes, <em>the adjusting entry for the deferred revenue by increasing an asset account (cash) with a debit and by increasing a liability account (unearned revenue) with a credit.</em>

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In addition to the three basic financial statements, which of the following is also a required financial statement? O Statement
Vikki [24]

Answer:

Statement of Cash Flows.

Explanation:

The financial statement comprises of income statement, balance sheet, statement of stockholder equity and the statement of cash flows. It is explained below

In the income statement, the total revenues and the total expenses are recorded.  

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

The debit and credit side of the balance sheet should always be equal and balanced.  

Moreover, it always is prepared on the specified date.

The statement of stockholder's equity comprises common stock and retained earnings.  

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issued shares

There are three types of activities in the cash flow statement which are described below:  

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income and the loss on sale of assets is added whereas the gain on sale of assets is deducted  

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

6 0
3 years ago
Two weeks before his performance appraisal, John successfully resolved a service complaint involving one of the company’s most i
Sergeu [11.5K]

Answer:

The correct answer is Recency error.

Explanation:

Focus on the most recent performance evaluated: The evaluators can be guided by the most recent actions and / or attitudes, whether negative or positive, without considering the history of the collaborators. This error can give an unfair result and nothing representative.

A recency error is an inaccuracy or failure in the performance evaluation or job interview, caused by the dependence of the evaluator or the interviewer on the most recent events of the employee or applicant behavior.

5 0
3 years ago
Louise has prepared a brief questionnaire to find out how satisfied her clients are with the service she has been providing them
mestny [16]
The are great company and very patients w clients
6 0
3 years ago
Which of the following statements about cover letters is false?
Radda [10]

The false statement about cover letters from the list of options is C. A cover letter is sent before a résumé so that the employer knows it is coming.

<h3>What is a Cover Letter?</h3>

This refers to the one-page document that a job seeker submits with his resume or CV that serves as an introduction.

Hence, we can see that based on the fact that cover letters are used by job seekers to make an introduction of themselves, we can see that sending it before a resume is false.

Read more about cover letters here:

brainly.com/question/3602860

#SPJ1

6 0
1 year ago
Chapter 13 bankruptcy is a filing meant for people who
azamat
Bankruptcy is a filing meant for people who are unemployed. If you do not have any job or any source of income, possibility is that you always encounters bankruptcy or 0 balance. If you do not own a business but have any source of income, still you can survive.
8 0
3 years ago
Read 2 more answers
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