Bijan Corporation Earned $4,000 of Revenue That Had Been Deferred $\begin{array}{cc}\text { Cash}\\\hline\begin{array}{ll|l}&4,000& \\\end{array}\end{array}$

question 48

Multiple Choice

Bijan Corporation earned $4,000 of revenue that had been deferred.How would the related adjusting entry be recorded in the company's T-accounts?

• A) \(\begin{array}{cc}\text { Cash}\\\hline
• \begin{array}{ll|l}
• &4,000& \\
• \end{array}
• \end{array}\)
• \(\begin{array}{cc}\text {Unearned Revenue }\\\hline
• \begin{array}{ll|l}
• && 4,000\\
• \end{array}
• \end{array}\)
• B) \(\begin{array}{cc}\text {Cash }\\\hline
• \begin{array}{ll|l}
• &4,000& \\
• \end{array}
• \end{array}\)
• \(\begin{array}{cc}\text { Revenue}\\\hline
• \begin{array}{ll|l}
• &&4,000 \\
• \end{array}
• \end{array}\)
• C) \(\begin{array}{cc}\text { Revenue}\\\hline
• \begin{array}{ll|l}
• &4,000& \\
• \end{array}
• \end{array}\)
• \(\begin{array}{cc}\text {Unearned Revenue }\\\hline
• \begin{array}{ll|l}
• &&4,000 \\
• \end{array}
• \end{array}\)
• D) \(\begin{array}{cc}\text { Unearned Revenue}\\\hline
• \begin{array}{ll|l}
• &4,000& \\
• \end{array}
• \end{array}\)
• \(\begin{array}{cc}\text {Revenue }\\\hline
• \begin{array}{ll|l}
• &&4,000 \\
• \end{array}
• \end{array}\)

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Definitions:

Nonconstant Rate

Refers to a rate that changes over time, as opposed to a constant or fixed rate which remains the same.

Mixed Cost

Expenses that contain both fixed and variable components, changing in total with the level of activity but not proportionately.

Cost-Volume-Profit Analysis

An accounting method used to determine the effects on company profits of different levels of sales volume and costs.

Fixed Costs

Fixed expenditures that are unaffected by the amount of goods produced or sold, covering rent, salaries, and insurance.