Subtracting a Decrease in Unearned Revenue from Net Income Eliminates

question 46

Multiple Choice

Subtracting a decrease in Unearned Revenue from net income eliminates the effect of recording revenue that:

• A)increased net income,but did not impact cash this period.
• B)decreased net income,but did not impact cash this period.
• C)increased net income and increased cash flow this period.
• D)decreased net income and decreased cash flow this period.

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Definitions:

Scope Creep

Adding functions to an information system after the project has begun.

Project Initiation

The phase in which a project is formally started, its scope defined, and stakeholders committed.

Functions Addition

The process of incorporating new capabilities or functionalities into an existing system or software.

Conversion Expense

Costs associated with converting raw materials or inputs into finished products, including labor, machine time, and other processing expenses.