Which of the Following Correctly Describes the Effects of Recording

question 68

Multiple Choice

Which of the following correctly describes the effects of recording deferred revenues when cash is received from a customer?

• A)Revenues are increased.
• B)Liabilities are not affected.
• C)Retained earnings increases.
• D)Net income is not affected.

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Definitions:

Balanced Portfolio

An investment approach that aims at balancing risk and reward by diversifying assets across various financial instruments.

Mutually Exclusive

Mutually exclusive events are those events that cannot occur at the same time, implying no overlap in their occurrence.

Mutually Exclusive

Events that cannot occur at the same time, implying that the occurrence of one event excludes the possibility of the other event occurring.

Independent

In statistics, refers to variables that are not affected by other variables in the context of the analysis.