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3 years ago

The deferred revenue account typically has which type of normal balance?

Business

1 answer:

Lubov Fominskaja [6]3 years ago

4 0

Answer:

b. Credit

Explanation:

Deferred revenue represents the revenue not earned, basically any advance payments received from customers, for which no goods are supplied or no services are provided yet.

Accordingly the company stands liable for such amount and shall repay in terms of goods or services, meanwhile this is shown as a liability in the balance sheet.

As liabilities has credit balance, deferred revenue also has credit balance.

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Why is the statistical validity of a multiple regression design more complicated to interrogate than a bivariate design? a. Thes

Allisa [31]

Answer:

The answer is letter D.

Explanation:

Because it is harder to detect outliers.

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2 years ago

Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations fol

erastovalidia [21]

Answer:

1. Using Absorption Costing

Income Statement

Sales 20,000 X $216 = $4,320,000

Less: Cost of Goods Sold (Note 1) =($1,240,000)

Gross Margin = $3,080,000

Less: Operating Expenses

Selling and Administrative Expense = ($560,000)

(Note 2)

Net Income = $2,520,000

Note:

Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000
Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,000

2. Using Variable Statement

Sales 20,000 X $216 = $4,320,000

Less: Variable Costs

Direct Material $20 X 20,000 = ($400,000)

Direct Labor $28 X 20,000 = ($560,000)

Variable Overhead $6 X 20,000 = ($120,000)

Variable Selling Expense $18 X 20,000 = ($360,000)

Contribution Margin = $2,880,000

Less: Fixed Costs

Fixed Overhead = ($160,000)

Fixed Selling & Administrative = ($200,000)

Net Income = $2,520,000

Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.

But Net income is same in both cases.

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3 years ago

What does country of primary residence mean?

ki77a [65]

A tenant whose apartment has just been converted to cooperative ownership

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2 years ago

For each of the following separate transactions,

Softa [21]

Answer: The answer is provided below

Explanation:

a. The reconstructed journal entry has been prepared and attached.

b. The following are the effects it has on the investing section or the financing section of the statement of cash flows.

The first transaction will lead to a cash inflow of $8,000 from the investing activities.

The second transaction is non-cash transaction therefore, it will not be reported in either the financing or the investing activities.

The third transaction will lead to a cash inflow of $2,000 from the financing activities.

The fourth transaction will lead to a cash outflow from the financing activities.

Thw diagram has been attached.

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3 years ago

If you spend $35 using a credit card, you have created:

Virty [35]

<span>If you spend $35 using a credit card you have created, a $35 financial liability for yourself. </span>

6 0

3 years ago