Real Losers,a Diet Magazine,collected $360,000 in Subscription Revenue in May

question 119

Multiple Choice

Real Losers,a diet magazine,collected $360,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue.
-The company uses the accrual method of accounting.By the end of December,how much Subscription revenue has been earned?

• A) $120,000
• B) $12,000
• C) $360,000
• D) $210,000

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Definitions:

Compounded Quarterly

Refers to the calculation of interest on a principal amount, where the interest is added back to the principal sum after each quarter, leading to interest being calculated on a new, higher total.

Average Rate

Typically refers to the mean value of a series of rates (such as interest or exchange rates) over a specified period of time.

Investment Account

A type of financial account that holds investments such as stocks, bonds, mutual funds, and ETFs, often managed by financial institutions or individuals to meet long-term financial goals.

Investing

Employment of financial assets aimed at producing income or profit.