If a company records cash received for services to be provided in the future with a debit to Cash and a credit to Service Revenue, how will this error affect total assets for the current period?
A. Total assets will be too high.
B. Total assets will be too low.
C. Total assets will be correct.
D. Not possible to determine.
Answer: C
You might also like to view...
The pronoun "who" is in the nominative case; the pronoun "whom" is in the objective case
Indicate whether the statement is true or false.
Entities are
a. nouns that are depicted by rectangles on an entity relationship diagram b. data that describe the characteristics of properties of resources c. associations among elements d. sets of data needed to make a decision
The balances of select accounts of McCarthy, Inc
as of December 31, 2016 are given below: Notes Payable-short-term $1,500 Salaries Payable 6,000 Notes Payable-long-term 25,000 Accounts Payable 3,100 Unearned Revenue 2,000 Interest Payable 2,200 The Unearned Revenue is the amount of cash received for services to be rendered in January 2017. Interest Payable will be paid on February 5, 2017. What are the total long-term liabilities shown on the balance sheet? A) $1,500 B) $6,000 C) $5,100 D) $25,000
Suppliers may be found through ________.
A. newspapers and magazines B. trade shows, conferences, and catalogs C. All of these. D. None of these.