On August 1 of the Current Year, Trevor Beck Received

question 94

Multiple Choice

On August 1 of the current year, Trevor Beck received $5400 for legal services to be performed evenly throughout the next six months. The adjusting entry on December 31 of the current year would include a:

• A)credit to Unearned Service Revenue of $4500.
• B)debit to Unearned Service Revenue of $900.
• C)debit to Service Revenue of $900.
• D)credit to Service Revenue of $4500.

Understand the practical implications and limitations of capital budgeting techniques.

Recognize the importance of cash flow timing and its effect on project viability through the payback method.

Understand the principles and applications of the Net Present Value (NPV) and Equivalent Annual Annuity (EAA) method for evaluating projects.

Identify and explain the limitations and advantages of the replacement chain method in capital budgeting.

---

Definitions:

Organization

Refers to a structured group of individuals working together to achieve common goals, which can vary in size, structure, and purpose across different contexts.

Disequilibrium

A state of cognitive imbalance or conflict that arises when new information contradicts existing beliefs or knowledge, driving the process of learning and adaptation.

Secondary Circular Reaction

A stage in Piaget's theory of cognitive development where infants (around 4-8 months) repeat actions that affect their environment, showing an early understanding of cause and effect.

Sensorimotor Stage

A developmental phase from birth to about 2 years of age, in Jean Piaget's theory, where infants learn about their environment through their sensory and motor interactions.