Question

properly describes a deferral? a. Cash is received before the revenue is recognized b. cash is...

properly describes a deferral?

a. Cash is received before the revenue is recognized

b. cash is paid in the same time period that the expense is incurred

c. cash is paid after the expense is incurred

d. cash is received after revenue is recognized

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans - Cash is received before revenue is recognized (Option 'a')

Deferral refers to the situation when the event of recognition is in future however the cash has been accepted before. In that case it is not included as asset in balance sheet but as a liability and is treated as 'Unearned revenue' until the event of recognition happens.

(If there are any questions, kindly let me know in comments. If the solution is to your satisfaction, a thumbs up would be appreciated. Thank You)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For each of the following select Yes or No. 6. An accrual means that revenue or...
For each of the following select Yes or No. 6. An accrual means that revenue or expense is recognized: Before cash is received or paid (yes/no). After cash is received or paid (yes/no). 7. An accrued revenue means: Revenue is earned (yes/no). Cash is received (yes/no). 8. An accrued expense means: Expense is incurred (yes/no). Cash is paid (yes/no). 9  A deferral means that revenue or expense is recognized: Before cash is received or paid (yes/no). After cash is received or...
Under accrual-basis accounting cash must be received before revenue is recognized. events that change a company’s...
Under accrual-basis accounting cash must be received before revenue is recognized. events that change a company’s financial statements are recognized in the period they occur rather than in the period in which cash is paid or received. net income is calculated by matching cash outflows against cash inflows. the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.
Which of the following is an example of an adjusting journal entry for a deferral? A...
Which of the following is an example of an adjusting journal entry for a deferral? A : Recording revenues that have been earned on account. B : Expensing a part of the cost of a building. C : Expensing wages and salaries that will not be paid until the next period. D : Recording an expense in the same period in which it was paid
Which of the following properly describes product costs? Select one: a. Product costs will include marketing...
Which of the following properly describes product costs? Select one: a. Product costs will include marketing expense b. Product costs are immediately expensed on the income statement when incurred c. Product costs are not recorded as inventory, but are immediately recorded as COGS d. Product costs are regarded as inventory
Revenue allocated to the PCS is deferred and recognized on a straight-line basis over the 2-year...
Revenue allocated to the PCS is deferred and recognized on a straight-line basis over the 2-year estimated life of a NOOK® device. The average percentage of a NOOK®’s sales price that is deferred for undelivered items and recognized over its 2-year estimated life ranges between 0% and 5%, depending on the type of device sold. The amount of NOOK®-related deferred revenue as of April 29, 2017 and April 30, 2016 was $226 and $160, respectively. These amounts are classified on...
Revenue is recognized when: A. A seller collect cash from a customer B. It has been...
Revenue is recognized when: A. A seller collect cash from a customer B. It has been earned and is realized or realizable C. A company has satisfied its performance obligation to the customer D. A company bills the customer for the goods that have been delivered or the services performed
1. Under the cash basis of accounting, expense recognition generally does not follow revenue recognition. True...
1. Under the cash basis of accounting, expense recognition generally does not follow revenue recognition. True or False? 2. Accrued revenues are: A. earned and recorded as liabilities before they are received. B. received and recorded as liabilities before they are earned. C. revenues that have not yet been received but have been earned and have been recorded for the first time by an adjusting entry. D. earned and already received and recorded. 3. Revenue must be recognized when (or...
13. Unearned revenue has: A) been earned but the cash has not been received. B) not...
13. Unearned revenue has: A) been earned but the cash has not been received. B) not been earned nor has the cash been received. C) been earned and the cash has been received. D) not been earned but the cash has been received.
After the closing process is complete, no balance can exist in any revenue, expense, Dividends, or...
After the closing process is complete, no balance can exist in any revenue, expense, Dividends, or Income Summary account. Select one: True False Net income for a period appears in all but which one of the following? Select one or more: a. Balance sheet. b. Statement of Retained Earnings credit column of the work sheet. c. Statement of retained earnings. d. Income Statement debit column of the work sheet. The post-closing trial balance may contain revenue and expense accounts. Select...
8a. When should a shipping company recognize revenue from its delivery service? a. On the date...
8a. When should a shipping company recognize revenue from its delivery service? a. On the date the customer places a order. b. On the date the customer’s packages are delivered. c. On the date the invoice is mailed to the customer. d. On the date the customer's payment is received. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 8B. When is revenue from the sale of merchandise normally recognized? a. On the date the sale is made. b. On the date the customer pays for the merchandise....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT