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4 years ago

Payments from customers received before performing services for the customers are recorded as

Business

1 answer:

Pachacha [2.7K]4 years ago

7 0

Answer:

B) liabilities.

Explanation:

When the payment is received from the customer before performing the services is known as unearned service revenue

The journal entry is

Cash A/c Dr XXXXX

To Unearned Service revenue A/c XXXXX

(Being advance payment is received)

We simply debited the cash account as cash is received and credited the respective account i.e unearned service revenue

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Gross profit is equal to a. sales plus cost of goods sold b. sales less selling expenses c. sales less cost of goods sold d. sal

alexdok [17]

Answer:

sales less cost of goods sold

Explanation:

Gross profit is the profit earned after after deducting the costs of goods sold from revenue

I hope my answer helps you

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3 years ago

Western company begins the year with $50,000 of inventory on hand. During 2018, western purchases additional inventory for $100,

slava [35]

Answer:

Debit cost of goods sold $40,000

Explanation:

As with the details of inventory we have:

Opening value of inventory = $50,000

Purchases = $100,000

Thus, total inventory = $150,000

On the closing date we have the balance of inventory in hand = $110,000

Therefore, cost of goods sold = Total inventory - Closing

= $150,000 - $110,000 = $40,000

Cost of goods sold is an expense, and shall be debited.

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3 years ago

A savings account is useful for all of the following purposes EXCEPT…

Dimas [21]

Answer:

The correct answer is letter "A": Putting aside money for retirement.

Explanation:

Savings accounts are those where individuals' can deposit money to profit from the annual interest banks and financial institutions provide. Retirement accounts, on the other hand, are those funded with money discounted from employees' paychecks and do not allow withdrawals unless there is a major qualifying event -<em>if the type of retirement account allows it</em>.

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3 years ago

Read 2 more answers

1) The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the f

Olenka [21]

Answer:The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the firm will experience (beginning now) an unusually high growth rate (20%) during the period (3 years) when it has exclusive rights to the property where this rock can be found. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will assume a normal growth rate of 8% annually. During the rapid growth period, the firm's dividend payout ratio will be relatively low (20%), to conserve funds for reinvestment. However, the decrease in growth will be accompanied by an increase in dividend payout to 50%. Last year's earnings were $2.00 per share (E0) and the firm's cost of equity is 10%. What should be the current price of the common stock?

Explanation:

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3 years ago

Describe the two primary functions of financial accounting

andreev551 [17]

Answer: Measurement and presentation of financial performance

Explanation: The two primary functions of financial accounting are measurement and presentation of financial performance.

The measurement function is performed by following accounting procedures and policies under US GAAP and IFRS.

Whereas, presentation function relates to preparation of financial statements like income statement and cash flow statement.

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4 years ago