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2 years ago

A credit entry was recorded for unearned revenue and a debit for cash. What does this entry indicate?

Business

1 answer:

rusak2 [61]2 years ago

7 0

Answer:

This means that there is an increase in cash(cash has been collected). And for the unearned revenue which is a liability, there is an increase in the liability

Explanation:

This means that there is an increase in cash(cash has been collected). And for the unearned revenue which is a liability, there is an increase in the liability.

Note: Debit side increases asset(cash) and expenses while credit side decreases liability,income and equity.

Credit side decreases asset(cash) and expenses while debit side increases liability,income and equity.

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When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to?

Jlenok [28]

When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to purchasing or sale of up to the stated maximum number of round lots (the standard trading unit of the stock) at the stated price.

This is further explained below.

Generally, A company providing professional services for compensation, such as law or accountancy, is called a "firm." One key tenet of "theory of the company" is that enterprises' primary purpose is to increase shareholder wealth.

In conclusion, By keeping a "firm market," a broker-dealer promises to buy or sell up to the maximum number of round lots (the stock's standard trading unit) at the quoted price.

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1 year ago

Chino Company reported net income of $23,000 for the current year. During the year, Inventory decreased by $7,500, Accounts Paya

ikadub [295]

Answer: A). $25,750.

Explanation:

Cash from operating activities refers to cash from the business operations of the company.

Formula is:

= Net Income + Depreciation + Decrease in inventory - Accounts payable decrease - Accounts receivable increase

= 23,000 + 10,500 + 7,500 - 8,250 - 7,000

= $25,750

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2 years ago

Read 2 more answers

Record the January 31, 2019 adjusting entry for the December 31, 2018 receipt of $3,000 from race participants for providing ser

MAXImum [283]

Answer:

Debit Unearned revenue $1,000

Credit Service revenue $1,000

Explanation:

When cash is received in advance for service yet to be provided, an asset and a corresponding liabilities are created.

The liability is then reduced as the revenue for which cash was collected in advance is earned.

Given that the December 31, 2018 receipt of $3,000 from race participants for providing services for three races. One race is held on January 31, 2019 and the other two will be held in March 2019.

Revenue from one race = 1/3 × $3,000

= $1,000

Since One race is held on January 31, 2019, entries required

Debit Unearned revenue $1,000

Credit Service revenue $1,000

Being entries top recognize revenue earned from the race held on January 31, 2019 .

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2 years ago

Airline F leases all its aircraft under finance leases. Airline O leases all its aircraft under operating leases. Assuming that

Usimov [2.4K]

Answer: e. Airline O has less lease assets at the inception of the lease

Explanation:

With operating leases, the entity leasing the asset or the lessee, does not get the rights to ownership of the asset being leased but instead simply pay a fee or sort of rent for leasing the asset.

With a finance lease however, ownership is passed to the lessee for the lease period and the lessee would have to depreciate the asset and record it in its books.

Airline O will therefore not record any assets but Airline F will. This means that Airline F will have more assets than O because it had to record its assets but O did not.

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2 years ago

Uh is edge supposed to have blank sections? Proof is below!

Charra [1.4K]

Answer:

nope as long as I remember

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2 years ago