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NEW QUESTION: 1
The publisher of a popular magazine offers a special discounted price for a 3-year subscription. At the balance sheet date, the amount that has already been collected but pertains to future periods is best referred to as:
A. Accrued subscriptions revenuean asset account
B. Precollected subscriptions receivable a deferred asset account
C. Earned subscriptions revenuea revenue account
D. Deferred subscriptions revenuea liability account
Answer: D
Explanation:
Income, which includes revenue and gains, is recognized in the income statement when an increase in future economic benefits related to an increase in an asset or a decrease in a liability can be reliably measured. Revenue is recognized reported as revenue) in the period in which the recognition criteria are met: therefore, when it is received in advance, the amount applicable to future periods is deferred. This deferral reflects the uncertainty of the reliable measurement of the future economic benefits. The uncertainty arises because the entity still must satisfy an obligation to perform in the future before it is entitled to the future economic benefits. The amount received in advance is considered a liability because it represents a present obligation arising from a past event.
Accordingly, deferred or unearned revenue is an amount that has been received but that has not met the recognition criteria for revenue.

NEW QUESTION: 2

A. Option B
B. Option D
C. Option A
D. Option C
Answer: D

NEW QUESTION: 3
Click the Exhibit button.

Which device plays the role of authenticator in an 802.1X design as shown in the exhibit?
A. Device C
B. Device B
C. Device A
D. Device D
Answer: A