Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 3, Problem 3MCQ
To determine
Identify the correct example of a deferral.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Accounting
If cash collected from customers is not yet recorded as revenue, what happens to it?
Which of the following is false?
A. A liability is created when cash is received prior to delivery of the goods or services.
20.
B. Revenue is recognized at the time of delivery of the goods or services if cash is
received.
C. Revenue is not recognized at the time of delivery of goods and services if cash is
received after delivery of the goods and services.
D. Collecting cash after delivery of a good or service does not create revenue on the
income statement at the date of collection.
EITHER TRUE OR FALSE. Describe why the assertion is incorrect if it is in fact incorrect.
1. Cash rules are standards by which employees should be guided and safeguarded against the income statement being misused.
Chapter 3 Solutions
Financial Accounting
Ch. 3 - Prob. 1YTCh. 3 - Prob. 2YTCh. 3 - Prob. 3YTCh. 3 - Prob. 4YTCh. 3 - Prob. 5YTCh. 3 - Prob. 6YTCh. 3 - Prob. 7YTCh. 3 - How does accrual basis accounting differ from cash...Ch. 3 - Prob. 2QCh. 3 - Prob. 3Q
Ch. 3 - Prob. 4QCh. 3 - What are accrued expenses?Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Name two common deferred expenses.Ch. 3 - What does it mean to recognize revenue?Ch. 3 - How does matching relate to accruals and...Ch. 3 - What is depreciation?Ch. 3 - Why is depreciation necessary?Ch. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - When prepaid insurance has been used, the...Ch. 3 - Prob. 10MCQCh. 3 - Prob. 1SEACh. 3 - Prob. 2SEACh. 3 - Account for interest expense. (LO 1, 2). UMC...Ch. 3 - Prob. 4SEACh. 3 - Account for insurance expense. (LO 1, 3). Catrina...Ch. 3 - Prob. 6SEACh. 3 - Account for unearned revenue. (LO 1, 3). Able...Ch. 3 - Prob. 8SEACh. 3 - Prob. 9SEACh. 3 - Prob. 10SEACh. 3 - Calculate profit margin on sales ratio. (LO 5)....Ch. 3 - Prob. 12SEBCh. 3 - Prob. 13SEBCh. 3 - Prob. 14SEBCh. 3 - Prob. 15SEBCh. 3 - Prob. 16SEBCh. 3 - Prob. 17SEBCh. 3 - Prob. 18SEBCh. 3 - Prob. 19SEBCh. 3 - Calculate net income. (LO I, 4). Suppose a company...Ch. 3 - Prob. 21SEBCh. 3 - Prob. 22SEBCh. 3 - Prob. 23EACh. 3 - Prob. 24EACh. 3 - Prob. 25EACh. 3 - Prob. 26EACh. 3 - Prob. 27EACh. 3 - Prob. 28EACh. 3 - Account for insurance expense. (LO 1, 3). Yodel ...Ch. 3 - Prob. 30EACh. 3 - Prob. 31EACh. 3 - Prob. 32EACh. 3 - Prob. 33EACh. 3 - Prob. 34EACh. 3 - Southeast Pest Control, Inc., was started when its...Ch. 3 - Prob. 36EACh. 3 - Prob. 37EACh. 3 - Prob. 38EACh. 3 - Prob. 39EACh. 3 - Prob. 40EBCh. 3 - Prob. 41EBCh. 3 - Prob. 42EBCh. 3 - TJs Tavern paid 10,800 on February 1, 2010, for a...Ch. 3 - Prob. 44EBCh. 3 - Prob. 45EBCh. 3 - Account for insurance expense. (LO 1, 3). All...Ch. 3 - Prob. 47EBCh. 3 - Prob. 48EBCh. 3 - Prob. 49EBCh. 3 - Prob. 50EBCh. 3 - Prob. 51EBCh. 3 - Prob. 52EBCh. 3 - From the following list of accounts (1) identify...Ch. 3 - Prob. 54EBCh. 3 - Prob. 55EBCh. 3 - Prob. 56EBCh. 3 - Prob. 57PACh. 3 - Prob. 58PACh. 3 - Prob. 59PACh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 61PACh. 3 - Record adjustments. (LO 1, 2, 3). The Gladiator...Ch. 3 - Prob. 63PACh. 3 - Transactions for Pops Company for 2011 were as...Ch. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 66PACh. 3 - Prob. 67PACh. 3 - Record adjustments and prepare income statement....Ch. 3 - Prob. 69PBCh. 3 - Prob. 70PBCh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 72PBCh. 3 - Record adjustments. (LO 1, 2, 3). Summit Climbing...Ch. 3 - Prob. 74PBCh. 3 - Prob. 75PBCh. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 77PBCh. 3 - Prob. 78PBCh. 3 - Identify and explain accruals and deferrals. (LO...Ch. 3 - Prob. 2FSACh. 3 - Prob. 3FSACh. 3 - Prob. 1CTPCh. 3 - Prob. 1IECh. 3 - Prob. 3IECh. 3 - Prob. 4IE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following is not an example of a cash outflow? Select one: a. Purchase of inventory on credit b. pay employee wages and salaries c. cash withdrawal by the owner d. payment of income tax e. payment of accounts payablearrow_forwardWhich of the following is not normally increased by a cash inflow transaction? a) Advances from Customers b.) Unearned Revenue from Customer Loyalty Program c.)Unearned Revenue from Warranty Contracts d.)Deposits on Returnable Containersarrow_forwardThe revenue recognition principle a. states that revenue is not recorded until the cash is received b. controls all revenue reporting for the cash basis of accounting c. is not in conflict with the cash method of accounting d. determines when revenue is credited to a revenue accountarrow_forward
- If cash is received from a customer in the current period, but the related performance obligation is not satisfied until a future period, the related expenses of generating the revenue should not be recognized until that future period. This guideline is an application of the: Select one: O a. None of the answers are correct O b. revenue recognition principle. O c. cost constraint. O d. matching principle. e. full disclosure principle.arrow_forwardThe collection of cash from customers to which they owe to the entity from its past rendering of services would cause what effect on corresponding accounts? a. No effect on neither assets nor liabilities b. Decrease in assets c. Increase in assets d. Increase in liabilitiesarrow_forwardWhich of the following statement is incorrect regarding Cash and Cash Equivalents? a. Postage Stamps and expenses advances should be reported as office supplies or prepaid expense b. Undelivered or unreleased checks should be reverted back to Cash and Accounts payable. c. Cash set aside for long-term specific purpose or for acquisition of a non-current asset should be reported as non-current financial asset. d. Cash in closed banks or banks having difficulty or in bankruptcy should be classify as Cash and should be written down to its recoverable amount.arrow_forward
- I. Encircle the best answer. Any type of erasure will make you answer incorrect. 1. revenues occur when: A. Goods or services are available B. Cash already received but not yet earned C. Expense has been incurred D. You paid it already 2. Accruals occur when: A. Goods or services are available B. Cash already received but not yet earned C. Expense has been incurred but not yet paid D. You paid it already 3. When a lessor paid an advance payment to a lessee for two years rent and records this using the expense method, what should be the credited account at year end (first year)? A. Debit cash B. Debit an expense account C. Debit a liability account D. Credit an expense account 4. When a business makes an adjusting entry at year-end with a debit to supplies, the usual credit entry is made to: A. Accounts receivable B. Cash C. Supplies expense D. Income summary 5. The adjusting entry required to record accrued liability includes: A. A credit to liability B. A debit to an asset C. A…arrow_forwardDirection. TRUE or FALSE._______1. An SME does not have a “cash and cash equivalents” line item in its balance sheet whilean entity that uses the full PFRSs has this line item._______2. An SME is does not have an “allowance for bad debts” account._______3. An SME entity shall require to use the direct method of presenting cash flows from theiroperating activities._______4. An SME is exempted from accounting for interest revenue under the cost interest method._______5. An SME is exempt from measuring its long-term, noninterest-bearing notes at present value._______6. An SME does not account for changes in fair values of investments in equity securities inthe other comprehensive income._______7. An SME is not required to present earnings per share information._______8. An SME is required to disclose key management personnel compensation in total only._______9. An SME doe not account for derivatives and hedging transactions._______10.An SME does not have any accounting for share-based…arrow_forwardWhich of the following is not correct about the negative cash flows? a. You cannot cover your expenses from sales alone O b. When your business has more outgoing than incoming money O C. You do have cash on hand to cover expenses O d. You can't sustain a business with long-term negative cash flowarrow_forward
- It is evident that cash is not being controlled well in the business. Identify twoproblems and provide advice to the owner as to how these problems can be avoidedin future.arrow_forwardb) Explain why the cash book as an asset is not transferred to the realization account during dissolution?arrow_forwardWhich of the following scenarios increases accounts payable? A customer fails to pay an invoice. A supplier delivers raw materials on credit. Office supplies are purchased with cash. None of the abovearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY