Under the Alternative Method for Accounting for Unearned Revenue,which of the Following

question 277

Multiple Choice

Under the alternative method for accounting for unearned revenue,which of the following pairs of journal entry formats is correct?

• A) \(\begin{array}{|l|l|}
• \hline{\text { Initial Entry }} & {\text { Adjusting Entry }} \\
• \hline \text { Cash } & \text { Unearned Consulting Revenue } \\
• \hline \text { Unearned Consulting Revenue } & \text { Consulting Revenue } \\
• \hline
• \end{array}\)
• B) \(\begin{array}{|l|l|}
• \hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\
• \hline \text { Cash } & \text { Consulting Revenue } \\
• \hline \text { Consulting Revenue } & \text { Unearned Revenue } \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|l|l|}
• \hline{\text { Initial Entry }} &{\text { Adjusting Entry }} \\
• \hline \text { Cash } & \text { Unearned Revenue } \\
• \hline \text { Unearned Revenue } & \text { Cash } \\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|l|}
• \hline{\text { Initial Entry }} &{\text { Adjusting Entry }} \\
• \hline \text { Consulting Revenue } & \text { Unearned Revenue } \\
• \hline \text { Cash } & \text { Consulting Revenue } \\
• \hline
• \end{array}\)
• E) \(\begin{array}{|l|l|}
• \hline{\text { Initial Entry }} & {\text { Adjusting Entry }} \\
• \hline \text { Cash } & \text { Consulting Revenue } \\
• \hline \text { Unearned Revenue } & \text { Unearned Revenue } \\
• \hline
• \end{array}\)

Analyze a company's ability to pay off its debts as they come due.

Compare and contrast different analytical tools used in financial statement analysis, including ratio analysis and common-size statements.

Identify the components and calculations involved in the current ratio and quick ratio.

Evaluate a company's operational efficiency through turnover ratios and other operating metrics.

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Definitions:

International Investment Portfolios

Collections of international financial assets including stocks, bonds, and other securities, held by investors to diversify risks and achieve financial goals across global markets.

Working Capital

The measure of a company's operational liquidity, calculated as current assets minus current liabilities.

Economic Downturns

Periods of reduced economic activity characterized by declines in GDP, employment, and trade, often leading to increased unemployment and financial hardship.

Foreign Direct Investment

Capital allocated by a firm or person from one country into commercial interests within a different country, achieved by creating business entities or buying business resources.