Daring Dolls, Inc

question 101

Multiple Choice

Daring Dolls, Inc. received an order to provide SuperDolls for a big department store. The store paid Daring Dolls in advance for the order of SuperDolls. Which of the following describes what will occur when Daring Dolls recognizes revenue?

• A)Cash will be increased.
• B)Accounts receivable will be increased.
• C)Deferred revenue will be decreased.
• D)Deferred revenue will be increaseD.When promised goods are delivered, and cash has already been received, a liability account, Deferred Revenue, is decreased, and the account Sales Revenue is increased.

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Definitions:

Cognitive Processes

Cognitive functions related to the acquisition, analysis, and retention of information.

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using information, including perception, memory, thinking, and language.

Encoding

The process of converting information into a form that can be stored in memory.

Encoding

The process of converting information into a form that allows it to be stored in our memory.