Pickett Company Typically Sells Subscriptions on an Annual Basis, and Publishes

question 33

Multiple Choice

Pickett Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 90,000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions?

• A) Subscriptions Receivable 1,350,000 Subscription Revenue 1,350,000
• B) Cash 1,350,000 Unearned Subscription Revenue 1,350,000
• C) Subscriptions Receivable 225,000 Unearned Subscription Revenue 225,000
• D) Prepaid Subscriptions 1,350,000 Cash 1,350,000

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all inputs are used efficiently.

Economic Growth

Refers to the increase in the production of economic goods and services, from one period to another, often measured by GDP (Gross Domestic Product).

Technological Advance

The development of new technologies or the improvement of existing technologies to enhance productivity, efficiency, or quality in goods and services.

Opportunity Cost

The economic impact of rejecting the following preferable option when deciding.