Deferred Revenue, which represents the company's obligation to honor gift cards previously issued to customers, totaled $6600 at the beginning of the year and $9700 at the end of the year. Customers purchased gift cards amounting to $53,000 during the year. What was the amount of gift cards redeemed by customers during the year?
A. $56,100
B. $49,900
C. $36,700
D. $69,300
Answer: B
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Which of the following statements is generally considered desirable?
a. A large decrease in accounts receivable turnover ratio b. A decrease in the number of days' sales in receivables c. An increase in sales along with a larger decrease in the gross profit ratio d. A decrease in the cash flow from operations to current liabilities ratio
Which of the following statements relating to insurance companies is correct?
a. Under GAAP, the balance sheet of an insurance company is classified by current assets and current liabilities. b. The largest liability on the balance sheet is generally unearned premiums. c. Under statutory accounting practices, real estate, not used in operations, is valued at market value on the balance sheet. d. For long-duration contracts, revenue is recognized when the premium is due from the policyholder.
The ________ comes into effect when a contract describes itself as being complete and final, preliminary or informal agreements made prior to or at the same time the contract was made will be ignored when interpreting it
A. choice-of-law clause B. Ultravires rule C. parol evidence rule D. per se rule
Although lower inventories and a just-in-time approach receive considerable attention in the business media, some organizations prefer high levels of inventory. Why would they want to hold a large inventory?
What will be an ideal response?