Company a Receives $10,000 in Advance This Month for Work

question 114

Multiple Choice

Company A receives $10,000 in advance this month for work to be performed next month.This month,the company should:

• A)Debit Inventory $10,000 and credit Sales Revenue $10,000.
• B)Debit Cash $10,000 and credit Deferred Revenue $10,000.
• C)Debit Inventory $10,000 and credit Accounts Payable $10,000.
• D)Debit Accounts Payable $10,000 and credit Cash $10,000.

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Definitions:

Analyst

A professional who evaluates or studies a particular domain, such as financial data, systems, or psychological behavior.

Objective Test

A form of assessment with questions that have a single correct answer, designed to measure an individual's knowledge or skills without bias.

Factor Analytic

A statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables called factors.

Factor Loadings

Statistical values that indicate the degree to which a particular variable contributes to or is associated with a latent factor in factor analysis.