When a company receives cash in advance from a customer, it should debit Cash and credit Accounts Receivable.
Answer the following statement true (T) or false (F)
False
This is false. Accepting cash in advance from a customer creates an obligation to provide future services to the customer. The company will recognize a liability called unearned revenue by increasing that account with a credit.
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On January 1, 2017, Apex Solutions paid $200,000 to acquire Fancy Phones Company, an electronic gadget-advertising website. At the time of the acquisition, Fancy Phones' balance sheet reported total assets of $200,000 and liabilities of $100,000. The fair market value of Fancy Phones' assets was $200,000. The fair market value of its liabilities was $100,000. At the end of 2020, goodwill was measured, and its fair value was determined to be $60,000. Record the impairment of goodwill. Omit explanation.
What will be an ideal response?
In December 2016, a donor to a college established a trust in which college receives $5,000,000 to be invested. The donor's spouse is to receive $40,000 of the income per year for ten years. At that point, the assets and income revert to the college. The college estimates that the present value of the anticipated receipts from the trust amount to $4,800,000. How should this $4,800,000 be recorded in 2016, assuming The College is aprivate institutionThe College is apublic institutionA)Contribution revenueDeferred inflowB)Contribution revenueContribution revenueC)Deferred inflowDeferred inflowD)Deferred inflowContribution revenue
A. A) B. B) C. C) D. D)
Helen deposits a $50 check in her account at First Bank at 4:00 on Friday. The bank is closed on Saturday and Sunday, but opens again on Monday. The midnight deadline for First Bank would be:
a. Midnight Saturday. b. Midnight Sunday. c. Midnight Monday. d. Midnight Tuesday.
To improve its profits, Delta Tool Corp. has redesigned its entire line of rechargeable power drills-adding several new or improved features and three new models. Apparently, Delta Tool is pursuing a ________ opportunity.
A. combiner B. product development C. market penetration D. market development E. diversification