Answer:
The answer is A. The total revenue will be understated
Explanation:
Unearned revenue is when the amount or money has been received before providing the service. For example, a manufacturer has received money from a customer for a product that will be delivered over a period of time, let's say every month.
Unearned revenue is a liability but the failure to make an adjusting entry in the income statement will understate revenue because as the product is being delivered monthly, the accountant should be recognizing it as revenue in the Income statement. As this is recognized as revenue, unearned revenue account decreases with the same amount monthly
Thinking skills are internal mental processes like focusing, analyzing information, making mental connections, and generating ideas.
People skills are interpersonal skills like listening, communication, and building relationships.
Both types of skills are essential for success.
Option C
<u>Explanation:</u>
All of the following are true of the effect of fair value accounting on the financial statements :
<u>option c. changes in the fair value of available-for-sale securities are recognized on the income statement. is correct
.</u>
Reasonable worth bookkeeping is a monetary detailing approach, otherwise called the "mark-to-advertise" bookkeeping practice, under proper accounting rules (GAAP). Utilizing reasonable worth bookkeeping, organizations measure and report the estimation of specific resources and liabilities based on their real or assessed reasonable market costs. Changes in resource or risk esteems after some time produce hidden additions or misfortunes for the advantages held and liabilities extraordinary, expanding or diminishing total compensation, just as value to be determined sheet.
Answer:
Cost of retained earnings
= <u>Do(1 + g)</u> + g
Po
= $1.26<u>(1 + 0.06)</u> + 0.06
$40
= 0.0333 + 0.06
= 0.0933 = 9.33%
Explanation:
Cost of retained earnings is equal to current dividend paid subject to growth rate divided by the current market price of common stock plus growth rate
