Asked by Alondra Cardenas on May 18, 2024
Verified
A company receives a $50,000 cash deposit from a customer on October 15 but will not deliver the goods until November 20.Which of the following statements is true?
A) Cash will be reported on the statement of cash flows for the month of November.
B) Revenue will be recorded and reported on the income statement for October.
C) A liability will be reported on the balance sheet at the end of October.
D) A prepaid asset will be reported on the balance sheet at the end of October.
Cash Deposit
Funds placed in a financial institution for safekeeping, which can include cash or cash equivalents.
Liability Reported
The representation of an entity's obligations or debts on its financial statements, indicating amounts owed to creditors.
Income Statement
A document detailing a firm's income, outlays, and profit over a given timeframe.
- Delve into the effects transactions exert on financial summaries, particularly the balance sheet, income statement, and cash flow statement.
Verified Answer
Learning Objectives
- Delve into the effects transactions exert on financial summaries, particularly the balance sheet, income statement, and cash flow statement.
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