In a Deferral Adjustment for Revenues Collected in Advance That

question 247

Multiple Choice

In a deferral adjustment for revenues collected in advance that are now earned:

• A)a liability is decreasing because cash is being paid for an expense incurred at the time of the adjustment.
• B)the liability recorded when cash was received is increased by the adjustment for the revenue being earned.
• C)the liability recorded when cash was received is decreased by the adjustment for revenue being earned.
• D)a liability is increasing because cash will be paid for an expense in the future.

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Definitions:

Reduced Cost

In optimization, it's the difference between the cost of a non-basic variable and its contribution to the objective function, used in linear programming.

Linear Optimization Problems

Mathematical problems concerned with finding the best solution from a set of linear relationships, subject to certain constraints.

Cell Value

In the context of spreadsheet software, it refers to the data or formula contained within a specific cell.

Solver Reports

Generated summaries by the Solver add-in in Excel, detailing the outcomes of optimization or problem-solving operations.