The Houston Rockets Basketball Team Receives $5,000 for Season Tickets

question 152

Multiple Choice

The Houston Rockets basketball team receives $5,000 for season tickets on August 1. By December 31, they have earned $2,000 of the revenue. The adjusting entry to be made on December 31 by the Houston Rockets includes a:

• A)credit to Unearned Revenue of $2,000.
• B)debit to Unearned Revenue of $2,000.
• C)debit to Service Revenue of $2,000.
• D)credit to Prepaid Revenue of $3,000.

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Definitions:

Labor Costs

The total sum of all wages paid to employees, as well as the costs of employee benefits and payroll taxes incurred by an employer.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).

Securities

Financial instruments that represent an ownership position in a company (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.