A College Has Collected Returnable Dormitory Room Deposits from Students

question 16

Multiple Choice

A college has collected returnable dormitory room deposits from students. How would these deposits be reported by the college?

• A) A current liability.
• B) Unrestricted revenue.
• C) Restricted revenue.
• D) A long-term liability.

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Definitions:

MRP II

Stands for Manufacturing Resource Planning, an evolution of Material Requirements Planning (MRP) that integrates additional data, such as employee and financial needs, to support manufacturing processes.

MRP

Material Requirements Planning; a system that calculates the materials and components needed to manufacture a product.

ERP

Enterprise Resource Planning; a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management, and supply chain operations.

POM Planning

Production and Operations Management Planning, involving the organization and coordination of manufacturing, production, and operations processes.