The Adjusting Entry for Deferred Revenues Result in

question 10

Multiple Choice

The adjusting entry for deferred revenues result in

• A)an increase to a liability account and a decrease to a revenue account.
• B)a decrease to a liability account and an increase to a revenue account.
• C)neither an increase or a decrease to a liability account.
• D)neither an increase or a decrease to a revenue account.

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Definitions:

Going Concern

An accounting principle assuming that an entity will remain in business for the foreseeable future, allowing it to carry out its operations and commitments.

Consolidated Statement

A financial statement that aggregates the financial performance of a company and its subsidiaries, presenting it as if the group were a single entity.

Comprehensive Income

The sum of net income and other comprehensive income, representing the total change in equity for a period other than transactions with owners.

Gross Margin

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage; an indicator of the financial health and performance of a business.