Asked by
Jarod Boles
on Oct 28, 2024
Verified
Which of the following correctly describes the effects of initially recording deferred revenue when cash is received from a customer?
A) Revenue is increased.
B) Liabilities are not affected.
C) Retained earnings increases.
D) Net income is not affected.
Retained Earnings
The amount of net profit remaining for the company after distributing dividends to its stockholders.
- Understand the rationale and method involved in making adjusting entries when preparing financial statements.
- Recognize the consequences of specific transactions on the financial records.
Verified Answer
CP
Learning Objectives
- Understand the rationale and method involved in making adjusting entries when preparing financial statements.
- Recognize the consequences of specific transactions on the financial records.
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