A Company Received a $6,500 Deposit from a Customer for Goods

question 24

Short Answer

A company received a $6,500 deposit from a customer for goods to be delivered the following month.Under the accrual and cash basis of accounting respectively the deposit would be recorded as:
$$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Accrual } \\\text { bassis }\end{array} & \begin{array} { l } \text { Cash } \\\text { basis }\end{array} \\\hline \text { a. } & \text { a liability. } & \text { a liability. } \\\hline \text { b. } & \text { a liability. } & \text { income. } \\\hline \text { c. } & \text { income. } & \text { a liability } \\\hline \text { d. } & \text { income. } & \text { income. } \\\hline\end{array}$$

Evaluate the effect of the English Civil Wars on colonial development and economic practices.

Examine the evolving trade relationships between New England, the Caribbean, and other colonies.

Understand the role of New France and the French relationship with indigenous peoples in North America.

Analyze the impact of colonial and British policies on the African slave trade and practices in the Chesapeake area.

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Definitions:

Price Elasticity

An indicator of the responsiveness of the quantity of a product demanded to its price change, represented in terms of percentage variation.

Demand Curve

An illustration depicting the correlation between a product's price and the level of demand from buyers, often characterized by a descending trajectory.

MR

Marginal Revenue, which is the increase in revenue resulting from the sale of one additional unit of a product.

Output Level

The amount of output produced by a firm or an industry within a certain period.