1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vitek1552 [10]
3 years ago
10

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called?

a(n)
Business
1 answer:
Bumek [7]3 years ago
3 0
<span> <span>The liability created by receiving cash before providing the service or delivering the goods in question is called unearned revenue. In this case, the entity providing the goods/services records this transaction as revenue that has been generated but in real sense, the seller remains with the liability until after the actual delivery of the goods/services. The purpose of this practice can be advantageous to the seller in certain situations such as easing the burden of paying interest on debts.</span></span>
You might be interested in
Milo Clothing experienced the following events during 2016, its first year of operation: 1. Acquired $12,000 cash from the issue
Serga [27]

Answer:

Explanation:

The four transactions  will be recorded in the general journal as follows:

1) Debit cash                 $12,000

             Credit common stock                       $12,000

(To record the sale of common stock)

2) Debit purchases                 $5,600

            Credit   cash                 $5,600

(To record purchase of inventory in cash)

3) Debit cash                 $5,712

           Credit sales                        $3,360

            Credit gross profit              $2,352

(To record the sale of inventory in cash)

4) Debit advertising expenses                   $650

          Credit cash                     $650

(To record the payment of advertising expenses in cash)

5 0
3 years ago
Bolster Soda had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Castor Soda had a turnover ratio of
Bess [88]

Answer:

This implies Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.

Explanation:

The accounts receivable turnover ratio refers to an accounting ratio that is used to show the how effective a firm is in collecting the receivables or money its clients are owing it.

This implies that accounts receivable turnover ratio is used to determine the extent to which a firm ie effectively managing the credit it gives to customers and how quickly the firm collects that that short-term debt.

The formula for calculating the accounts receivable turnover ratio is as follows:

Accounts receivable turnover ratio =  Net credit sales / Average accounts receivable

When the accounts receivable turnover ratio is high, it implies that the company is efficient is collecting debt and a high percentage of its cutomers are paying up their debts.

The account receivable turnover ratios in the question therefore imply Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.

3 0
3 years ago
Which of the following is true for project manager that work in a specific industry?
astra-53 [7]

Answer: A. they have expertise in a focused technical topic

Explanation:

6 0
3 years ago
Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function.
AleksAgata [21]

Answer:

<em>Budgeting, analysis of investment proposals, and provision of funds are activities associated with the </em><em><u>finance</u></em><em> function.</em>

Explanation:

<em>The </em><em>finance </em><em>function</em><em> </em><em>manage</em><em>s</em><em> </em><em>a </em><em>business</em><em>'</em><em> </em><em>finance </em><em>and </em><em>helps </em><em>with</em><em> </em><em>the </em><em>decision</em><em>-</em><em>making</em><em>.</em><em> </em><em>This </em><em>allows </em><em>businesses</em><em> </em><em>to </em><em>manage</em><em> </em><em>in </em><em>the </em><em>modern</em><em> </em><em>world.</em>

3 0
2 years ago
The 7​-year ​$1 comma 000 par bonds of Vail Inc. pay 9 percent interest. The​ market's required yield to maturity on a​ comparab
Makovka662 [10]

Answer:

a) Yield to maturity = 8.14%

b) The value of the bonds = $917.99

c) Since market value of bond is higher than book value of bond. So investor should not purchase the bond.

7 0
3 years ago
Other questions:
  • On June 8, Alton Co. issued an $88,500, 7%, 120-day note payable to Seller Co. Assume that the fiscal year of Seller Co. ends Ju
    15·1 answer
  • Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their produ
    13·2 answers
  • Consider an economy that produces only two goods: fresh apricots and dried apricots. In this economy, the technology of producin
    12·1 answer
  • Relatively high paid workers are reluctant to shirk because
    5·1 answer
  • The common stock of Alpha Manufacturers has a beta of 1.18 and an actual expected return of 13.33 percent. The risk-free rate of
    11·1 answer
  • Product Pricing: Single Product Presented is the 2017 contribution income statement of Grafton Products. GRAFTON PRODUCTS Contri
    12·1 answer
  • Import tariffs generally ________ the output of domestic producers of the affected products and also _________ the output of dom
    5·1 answer
  • Problem solving importance to the future of workplace
    9·1 answer
  • Omg im bout to pass out dont say that
    9·2 answers
  • Giving consumers product brochures to take home with them helps with ________, since many of them will not remember the details
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!