Explain the difference between
A) Accrued revenues and unearned revenues
B) Accrued expenses and prepaid expenses.
C) Give an example of each.
A) Accrued revenues are services that have been provided but not yet billed and the cash payment for these services has not been received. Unearned revenues are payments have been received for services to be provided in the future.
B) Accrued expenses are expenses that have incurred but have not been paid or recorded in the accounting records. Prepaid expenses are expenses that have been paid for and have economic benefits in future accounting periods.
C) Accrued revenues - (Varied examples will be given by students)
Unearned revenues - (Varied examples will be given by students)
Accrued expenses - (Varied examples will be given by students)
Prepaid expenses - (Varied examples will be given by students)
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In the liquidity-preference model, an increase in prices causes
A. both the nominal interest rate and the equilibrium quantity of money to decrease. B. the nominal interest rate to increase and the equilibrium quantity of money to remain unchanged. C. the nominal interest rate to decrease and the equilibrium quantity of money to remain unchanged. D. both the nominal interest rate and the equilibrium quantity of money to increase.
Use the cost information below for Ruiz Inc. to determine the total manufacturing costs incurred during the year: Work in Process, January 1$50,400? Work in Process, December 31 37,200? Direct materials used$12,700? Total factory overhead 5700? Direct labor used 26,700?
A. $45,100. B. $89,800. C. $58,300. D. $13,200. E. $95,500.
Type I error occurs when the sample results lead to the rejection of the null hypothesis when it is in fact true
Indicate whether the statement is true or false
The chief criticism of Milton Friedman’s philosophy suggests that businesses following his advice would often ______.
a. pay more in taxes than is due b. weaken their relationship with shareholders c. fail to compete effectively in the marketplace d. deliberately act unethically in the pursuit of profits