AE for Revenue in Advance

Q.

Explain the commission received in advance journal entry. - Commerce Q&A

Q.

Income received in advance but not earned will appear in the balance sheet as ___.

1. Liabilities

2. Revenue

3. Assets

4. Capital

Q.

What is the treatment of outstanding expenses?

Q. concept states that income received in advance should be considered as a liability and not as revenue.

1. Consistency
2. Matching
3. Prudence
4. Going concern

Q.

Which of the following would NOT be considered an intangible asset?

1. Interest payable

2. A patent

3. A trademark

4. All of these are intangible assets

Q.

What is the IRS rule of LIFO conformity?

Q.

According to which concept, Income received in advance should be considered as liability and not as revenue?

1. Business Entity

2. Going concern

3. Matching

4. Consistency

Q.

What is required for revenue recognition?