MBA 601 Exam 1 includes accurate and verified
questions covering foundational business concepts
such as managerial economics, organizational
behavior, marketing principles, financial analysis, and
strategic decision-making.
Lawyers Inc. accepted a $12,000 retainer for which the company agreed to
provide services in the future. Recognizing this event would - answers is :-defer
the recognition of revenue.
-cause the company's assets to increase.
-cause the company's liabilities to increase.
AAA Consulting Services collected $6,000 cash for services to be provided in the
future. Which of the following shows how recognizing the cash receipt will affect
the company's ledger accounts? - answers is :Cash = 6,000
Unearned Rev = 6,000
Which of the following shows how the event "collected cash for services to be
rendered in the future" affects a company's financial statements? - answers is :A +
L+
Cash Flow +OA
,On October 1 of Year 1 Zeta Company collected $1,200 cash for services to be
provided for one year beginning immediately. The company's fiscal closing date is
December 31. Based on this information, the amount of revenue appearing on the
Year 1 income statement would be - answers is :$300
Revenue earned per month = $1,200 total ÷ 12 months = $100 per month
As of December 31, Year 1:Amount earned = $100 per month x 3 months = $300
service revenue
Future obligation = $100 per month x 9 months = $900 unearned revenue
On August 1 of Year 1 Accounting Associates (AA) collected $1,200 cash for
consulting services to be provided for one year beginning immediately. Based on
this information, which of the following show how the required adjustment on
December 31, Year 1 would affect AA's ledger accounts? - answers is :Unearned
Rev = (500)
RE = 500
Revenue earned per month = $1,200 total ÷ 12 months = $100 per month
As of December 31, Year 1:Amount earned = $100 per month x 5 months = $500
service revenue
,On August 1 of Year 1 Accounting Associates collected $1,200 cash for consulting
services to be provided for one year beginning immediately. The company's fiscal
closing date is December 31. Based on this information, the amount of unearned
revenue appearing on the December 31, Year 2 balance sheet would be - answers
is :Zero
Revenue earned per month = $1,200 total ÷ 12 months = $100 per month
As of December 31, Year 1:Amount earned = $100 per month x 5 months = $500
service revenue
Future obligation = $100 per month x 7 months = $700 unearned revenue
As of December 31, Year 2:Amount earned = $100 per month x 7 months = $700
service revenue
All of the revenue has been earned by the end of Year 2 so the amount of
unearned revenue is zero on December 31, Year 2.
Which of the following shows how the adjusting entry to recognize services
provided to a client who paid for the services prior to the work being performed?
- answers is :L -
Equity +
Rev +
NI +
Cash Flow - NA
, On May 1 of Year 1 Matthew Company collected $2,400 cash for services to be
provided for one year beginning immediately. The company's fiscal closing date is
December 31. Based on this information, the amount of service revenue and the
cash flow from operating activities shown on the Year 1 financial statements
would be - answers is :Rev 1,600
Cash Flw 2,400
Revenue earned per month = $2,400 total ÷ 12 months = $200 per month
As of December 31, Year 1:Amount earned = $200 per month x 8 months = $1,600
service revenue
All of the cash was collected in Year 1, the cash inflow from operating activities on
the December 31, Year 1 statement of cash flows would be $2,400.
On June 1 of Year 1 Zoe Company collected $1,800 cash for medical services to be
provided for one year beginning immediately. The company's fiscal closing date is
December 31. Based on this information the amount of unearned revenue and
service revenue shown on the Year 1 financial statements would be - answers is
:Unearned Rev = 750
Service rev = 1,050
Revenue earned per month = $1,800 total ÷ 12 months = $150 per month
questions covering foundational business concepts
such as managerial economics, organizational
behavior, marketing principles, financial analysis, and
strategic decision-making.
Lawyers Inc. accepted a $12,000 retainer for which the company agreed to
provide services in the future. Recognizing this event would - answers is :-defer
the recognition of revenue.
-cause the company's assets to increase.
-cause the company's liabilities to increase.
AAA Consulting Services collected $6,000 cash for services to be provided in the
future. Which of the following shows how recognizing the cash receipt will affect
the company's ledger accounts? - answers is :Cash = 6,000
Unearned Rev = 6,000
Which of the following shows how the event "collected cash for services to be
rendered in the future" affects a company's financial statements? - answers is :A +
L+
Cash Flow +OA
,On October 1 of Year 1 Zeta Company collected $1,200 cash for services to be
provided for one year beginning immediately. The company's fiscal closing date is
December 31. Based on this information, the amount of revenue appearing on the
Year 1 income statement would be - answers is :$300
Revenue earned per month = $1,200 total ÷ 12 months = $100 per month
As of December 31, Year 1:Amount earned = $100 per month x 3 months = $300
service revenue
Future obligation = $100 per month x 9 months = $900 unearned revenue
On August 1 of Year 1 Accounting Associates (AA) collected $1,200 cash for
consulting services to be provided for one year beginning immediately. Based on
this information, which of the following show how the required adjustment on
December 31, Year 1 would affect AA's ledger accounts? - answers is :Unearned
Rev = (500)
RE = 500
Revenue earned per month = $1,200 total ÷ 12 months = $100 per month
As of December 31, Year 1:Amount earned = $100 per month x 5 months = $500
service revenue
,On August 1 of Year 1 Accounting Associates collected $1,200 cash for consulting
services to be provided for one year beginning immediately. The company's fiscal
closing date is December 31. Based on this information, the amount of unearned
revenue appearing on the December 31, Year 2 balance sheet would be - answers
is :Zero
Revenue earned per month = $1,200 total ÷ 12 months = $100 per month
As of December 31, Year 1:Amount earned = $100 per month x 5 months = $500
service revenue
Future obligation = $100 per month x 7 months = $700 unearned revenue
As of December 31, Year 2:Amount earned = $100 per month x 7 months = $700
service revenue
All of the revenue has been earned by the end of Year 2 so the amount of
unearned revenue is zero on December 31, Year 2.
Which of the following shows how the adjusting entry to recognize services
provided to a client who paid for the services prior to the work being performed?
- answers is :L -
Equity +
Rev +
NI +
Cash Flow - NA
, On May 1 of Year 1 Matthew Company collected $2,400 cash for services to be
provided for one year beginning immediately. The company's fiscal closing date is
December 31. Based on this information, the amount of service revenue and the
cash flow from operating activities shown on the Year 1 financial statements
would be - answers is :Rev 1,600
Cash Flw 2,400
Revenue earned per month = $2,400 total ÷ 12 months = $200 per month
As of December 31, Year 1:Amount earned = $200 per month x 8 months = $1,600
service revenue
All of the cash was collected in Year 1, the cash inflow from operating activities on
the December 31, Year 1 statement of cash flows would be $2,400.
On June 1 of Year 1 Zoe Company collected $1,800 cash for medical services to be
provided for one year beginning immediately. The company's fiscal closing date is
December 31. Based on this information the amount of unearned revenue and
service revenue shown on the Year 1 financial statements would be - answers is
:Unearned Rev = 750
Service rev = 1,050
Revenue earned per month = $1,800 total ÷ 12 months = $150 per month
