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

question 25

Multiple Choice

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 account credited is a Accrual basis Cash basis

• A) liability liability
• B) liability revenue
• C) revenue liability
• D) revenue revenue

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Definitions:

Marginal Probability

The probability of a single event occurring without consideration of any other events, typically found in the context of probability distributions.

V(X + Y)

The variance of the sum of two random variables, reflecting the spread or variability of their combined distribution.

Probability Distribution

A mathematical description of the likelihood of occurrence of different possible outcomes in an experiment.

Random Variable

A variable whose outcomes are determined by a random phenomenon or process.