Summer Leasing received $12,000 from a customer to cover 24 months of rent in advance. How should Summer record this transaction?
A. Debit Prepaid Rent; credit Rent Expense.
B. Debit Rent Expense; credit Cash.
C. Debit Cash; credit Service Revenue.
D. Debit Cash; credit Deferred Revenue.
Answer: D
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Which of the following represents all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use?
A. Product development B. Production C. Retailing D. Manufacturing
Operating expenses include cost of goods sold
Indicate whether the statement is true or false
You are considering your housing options for next semester. The cost of a dorm room and the cost of an apartment are the same. You paid a $50 non-refundable deposit to live in the dorm last year. This deposit is an example of a(n):
A) opportunity cost. B) relevant cost. C) sunk cost. D) avoidable cost.
If the predetermined overhead rate is based on the estimated level of activity for the current period, then products will be charged only for the capacity that they use and will not be charged for the capacity they don't use.
Answer the following statement true (T) or false (F)