Question

An unearned revenue can best be described as an amount * (1 Point) collected and currently matched with expenses. collected but not currently matched with expenses. not collected but currently matched with expenses. 0 not collected and not currently matched with expenses. 64 Purchasing supplies for cash + (1 Point) O Decreases assets and liabilities 0 Does not affect total assets O Increases assets and liabilities Increase assets and decrease liabilities 65 Paper used by printing houses in publishing novels are (1 Point) h O Direct Material: Conversion Cost O Direct Material: Prime Cost 0 Indirect Material: Prime Cost Indirect Material: Period Cost 66 In which of the following scenario will the supplier be issuing a credit memo? * (1 Point) O Granting Trade discount to buyer O Granting of allowance to buyer for defective merchandise 15 Granting of volume discount O All of the above 73 Wages of Assembly line workers are (1 Point) N O Prime Cost: Indirect Labor O Prime Cost: Period Cost O Conversion Cost Direct Cost Conversion Cost Indirect Cost :

Answer 1

Unearned revenue is payment received but not yet earned, and purchasing supplies for cash changes the composition of assets but not the total. Paper for printing is a direct material, while a credit memo is issued for allowances on defective goods. Assembly worker wages are direct labor costs.

Step-by-step explanation:

Unearned revenue can best be described as an amount collected but not currently matched with expenses. This represents a situation where a company has received payment in advance for services or goods that are to be provided in the future. As the service is performed or the goods are delivered, the unearned revenue is then recognized as earned and is matched with the expenses.

Purchasing supplies for cash decreases one asset (cash) and increases another asset (supplies inventory), hence does not affect the total assets.

Paper used by printing houses in publishing novels is considered a Direct Material and part of Prime Cost, as it is a main component in the production of their final product.

A supplier would issue a credit memo when granting an allowance to a buyer for defective merchandise. This transaction acknowledges the return of goods or a price adjustment after a sale has occurred, therefore reducing the receivable from the buyer.

Wages of assembly line workers are considered Direct Labor and a part of both Prime Cost and Conversion Cost. These costs are directly associated with manufacturing a product and converting raw materials into finished goods.