Please help me with explanation what is correct option with explanation please without plagiarism During the first year of its operations, a publishing company received $200,000 from sales ofperiodical subscriptions. At the end of the year, management determined that 40% of thesubscription requirements had been fulfilled through mailings of periodicals to subscribers.In addition (to the above), sales of periodicals through newsstands amounted to $60,000.These sales were all for cash.Expenses during the year (all paid in cash) amounted to $110,000.As a result of the above, which of the following is a correct statement?A) The firm had an asset called 'accrued subscriptions receivable' at the end of theyear amounting to $120,000.B) The firm's net cash flow (increase or decrease in the cash balance) was less thanits reported income (ignoring taxes) for the year.C) The firm reported income (ignoring taxes) for the year in the amount of $70,000.D) The firm recognized revenue for the year in the amount of $140,000.E) The firm had a liability for undelivered periodicals at the end of the yearamounting to $200,000.

Revenue recognition is the principle that states that revenue should be recorded when it is earned,…

As a result of the above, which of the following is a correct statement? A) The firm had an asset called 'accrued subscriptions receivable' at the end of the year amounting to $120,000. B) The firm's net cash flow (increase or decrease in the cash balance) was less than its reported income (ignoring taxes) for the year. C) The firm reported income (ignoring taxes) for the year in the amount of $70,000. D) The firm recognized revenue for the year in the amount of $140,000. E) The firm had a liability for undelivered periodicals at the end of the year amounting to $200,000.

As a result of the above, which of the following is a correct statement? A) The firm had an asset called 'accrued subscriptions receivable' at the end of the year amounting to $120,000. B) The firm's net cash flow (increase or decrease in the cash balance) was less than its reported income (ignoring taxes) for the year. C) The firm reported income (ignoring taxes) for the year in the amount of $70,000. D) The firm recognized revenue for the year in the amount of $140,000. E) The firm had a liability for undelivered periodicals at the end of the year amounting to $200,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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