In Which of the Following Situations Would Daystar Company Record

question 129

Multiple Choice

In which of the following situations would Daystar Company record unearned revenue in May?

• A)In April,Daystar Company received payment from a customer for services that are performed in May.
• B)Daystar Company completes a job for a customer in May;payment will be received in June.
• C)Daystar Company is paid on May 25 for work done in the first two weeks of May.
• D)Daystar Company receives payment in May for work to be performed in June and July.

---

Definitions:

Multiproduct CVP Analysis

A method used in managerial accounting to analyze the profitability of products by examining the relationship between cost, volume, and price across multiple products.

Constant Sales Mix

An assumption in cost-volume-profit analysis that the sales mix will remain unchanged as sales levels vary.

Assumption

A basic premise or belief that is accepted as true without proof as the basis for argument or inference.

Multiproduct Company

A business entity that manufactures or sells more than one type of product, often across different product lines or industries.