« previous next »

Author Question: Which of the following entries records the receipt of cash for two months' rent? The cash was ... (Read 70 times)

robinn137

  • Hero Member
  • *****
  • Posts: 544
on: Jul 5, 2018
Which of the following entries records the receipt of cash for two months' rent? The cash was received in advanceof providing the service.
 a. Prepaid Rent, debit; Rent Revenue, credit.
  b. Cash, debit; Unearned Rent, credit.
  c. Cash, debit; Prepaid Rent, credit.
  d. Cash, debit; Rent Expense credit.

Question 2

How does ABC costing system help service companies?
 
  What will be an ideal response?


upturnedfurball

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 5, 2018
Answer to Question 1

b

Answer to Question 2

Answer: The widespread use of ABC systems in service and merchandising companies reinforces the idea that ABC systems are used by managers for strategic decisions rather than for inventory valuation. Service companies, in particular, find great value from ABC because a vast majority of their cost structure is composed of indirect costs. ABC helps to assign indirect costs to cost objects by identifying activities and cost drivers. As a result, ABC systems provide greater insight than traditional systems into the management of these indirect costs.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

(A) A 62-year-old patient with myxedema exhibiting marked edema of the face and a somnolent look. Th (A) A 62-year-old patient with myxedema exhibiting marked edema of the face and a somnolent look. Th
Comparison of Paper Medical Records and Electronic Health Records Comparison of Paper Medical Records and Electronic Health Records
Comparison of Paper Medical Records and Electronic Health Records Comparison of Paper Medical Records and Electronic Health Records
Bereaved spouses studied before loss, at the time of loss, and 18 months after loss show five ... Bereaved spouses studied before loss, at the time of loss, and 18 months after loss show five ...
Food vs Cash: Which Is More Effective for Alleviating Hunger? Food vs Cash: Which Is More Effective for Alleviating Hunger?
The striking improvements in motor development in the early months The striking improvements in motor development in the early months
Video: Oxygen - hemoglobin dissociation curve & Hemoglobin's affinity with oxygen - acidity

For a complete list of videos, visit our video library