The Adjusting Entry That Recognizes Revenue Earned on Deferred Revenues

question 107

Multiple Choice

The adjusting entry that recognizes revenue earned on deferred revenues results in a(n) ________.

• A) increase in liabilities and a decrease in stockholders' equity
• B) decrease in liabilities and a decrease in stockholders' equity
• C) increase in liabilities and an increase in stockholders' equity
• D) decrease in liabilities and an increase in stockholders' equity

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Functional Risk

The potential for a product or service to fail to perform its intended function, causing inconvenience or loss to the user.

Directed Learning

A form of learning where the objectives and the process are defined and structured by instructors, teachers, or educational systems.

Actual State-Need

The current condition of an individual that prompts a recognition of a need, leading to a decision-making process to fulfill that need.