Winston Company Sells Magazine Subscriptions for One- to Three-Year Subscription

question 15

Multiple Choice

Winston Company sells magazine subscriptions for one- to three-year subscription periods.Cash receipts from subscribers are credited to Magazine Subscriptions Collected in Advance,and this account had a balance of $9,600,000 at December 31,2013,before year-end adjustment.Outstanding subscriptions at December 31,2013,expire as follows:

In its December 31,2013,balance sheet,what amount should Winston report as the balance for magazine subscriptions collected in advance?

• A)$2,000,000
• B)$3,800,000
• C)$7,600,000
• D)$9,600,000

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Definitions:

Local Decision Making

The process of making choices or solving problems at a local level, often allowing individuals or groups closest to the issue or situation to make the decisions.

Polycentric

Polycentric refers to a philosophy or approach in international business, in which policies and practices are tailored specifically to fit the requirements of each country.

Transnational

Referring to processes, companies, or projects that exceed national borders, involving multiple countries.

Futuristic Perspective

Refers to a forward-looking viewpoint, focusing on innovative or predicted advancements and their implications for the present and future.