Organizations Such as Amazon

question 207

Multiple Choice

Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that are based on:

• A) digital technology.
• B) tangible output.
• C) direct contact with customers.
• D) mechanistic technology.
• E) products rather than services.

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Definitions:

Prepaid Rent

An expense that represents payment made in advance for the use of property or space, which is recorded as an asset until it is consumed or the rental period elapses.

Adjusting Entries

Entries recorded at the conclusion of an accounting cycle to distribute revenues and expenses to the timeframe in which they were truly incurred.

Deferral

An accounting practice in which the recognition of an expense or revenue is delayed to a future accounting period.

Unearned Revenue

Unearned revenue represents money received by a company for goods or services yet to be delivered or performed, also known as deferred revenue.