When Unearned Revenue Is Finally Earned, a Revenue Account Is

question 10

True/False

When unearned revenue is finally earned, a revenue account is debited to reflect the amount of the revenue earned.

Identify the adjustments necessary for the indirect method of cash flows related to net income.

Recognize the difference between cash and accrual basis as applied in the statement of cash flows.

Identify items not used in preparing the statement of cash flows.

Understand the treatment of noncash transactions and significant noncash activities.

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Definitions:

Forward Rate

The agreed upon exchange rate for a currency transaction that will occur at a future date.

Spot Price

The current market price at which an asset can be bought or sold for immediate delivery.

Canadian Dollars

The currency of Canada, symbolized as CAD, and used throughout the country.

Exchange Rate

In international finance, the rate at which one currency can be traded for another. Spot rates are available for current trades. Forward rates are available for currency to be delivered in a specified period of time.