Use This Information to Answer the Following Question

question 128

Multiple Choice

Use this information to answer the following question. The total dollar amount of assets to be classified as investments is

• A) $100,000.
• B) $180,000.
• C) $0.
• D) $80,000.

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Definitions:

Deferred Revenue

Money received for goods or services which have not yet been delivered or rendered, considered a liability until the service or good is provided.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Deferred Revenue

Money received by a company for goods or services yet to be delivered or performed, recognized as a liability until the service or product is delivered.

Adjusting Entry

An accounting entry made to update the financial records before financial statements are prepared, ensuring they follow the accrual basis of accounting.