A Company Receives a $50,000 Cash Deposit from a Customer

question 2

Multiple Choice

A company receives a $50,000 cash deposit from a customer on October 15 but will not deliver the goods until November 20.Which of the following statements is true?

• A)Cash will be reported on the statement of cash flows for the month of November.
• B)Revenue will be recorded and reported on the income statement for October.
• C)A liability will be reported on the balance sheet at the end of October.
• D)A prepaid asset will be reported on the balance sheet at the end of October.

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Definitions:

Biological Differences

The physical and genetic variations that distinguish organisms, including humans, from one another, such as differences in DNA, physiology, and anatomy.

Essentialism

is the belief that objects, individuals, or concepts have a set of essential attributes that define their identity.

Breadwinners

Individuals, traditionally men, who are the primary providers of financial support for their families.

Homemakers

Individuals who manage household duties including caring for family members, cleaning, and cooking, often without receiving formal wages.