When a magazine company collects cash for selling a subscription, it is an example of: select one:

a. an accrued receivable transaction.

b. a prepaid expense transaction.

c. an accrued liability transaction.

d. a deferred revenue transaction. previous page?

Question

Crystal Nielsen

Business

5 October, 03:58

When a magazine company collects cash for selling a subscription, it is an example of: select one:

a. an accrued receivable transaction.

b. a prepaid expense transaction.

c. an accrued liability transaction.

d. a deferred revenue transaction. previous page?

+2

Answers (1)

Know the Answer?

Alayna Hodges · Answer 1

The answer is a) an accrued receivable transaction

Explanation:

The sale of a subscription by the magazine company can be viewed as a source of income. A sale of a subscription service where cash is collected after the service has been provided is treated as an accrued receivable transaction. The recognition of revenue from the sale of the subscription is based on revenue recognition principle which states that revenues are recognized when they realized and earned.

When a magazine company collects cash for selling a subscription, it is an example of: select one:a. an accrued receivable transaction.b. a prepaid expense transaction.c. an accrued liability transaction.d. a deferred revenue transaction. previous page?

When a magazine company collects cash for selling a subscription, it is an example of: select one:

a. an accrued receivable transaction.

b. a prepaid expense transaction.

c. an accrued liability transaction.

d. a deferred revenue transaction. previous page?