Why Is a Plumber Never Likely to Be as Rich

question 126

Multiple Choice

Why is a plumber never likely to be as rich as a movie star?

• A)compensating differentials create a higher wage in the movie business
• B)a plumber can provide his services to only a limited number of customers
• C)there haven't been any decent technological advances in the plumbing industry
• D)productivity levels are low in the plumbing industry due to low worker morale

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Definitions:

Prepaid Rent

An accounting term for payments made in advance for rent that covers future periods, recorded as an asset on the balance sheet until it is consumed.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and put into use.

Unearned Ticket Revenue

Revenue received from tickets sold for future events, which is considered a liability until the service (the event) is provided.

Adjusted Trial Balance

An accounting worksheet that reflects the account balances after adjustments are made for accruals and deferrals at the end of a reporting period.