Magazine subscriptions collected in advance are treated as

a. Deferred revenue in the liability section

b. Magazine subscription refund in the income statement in the period collected x
c. A contra account to magazine subscriptions receivable
d. Deferred revenue in the shareholders' equity section
In June of the current year, an entity sold refundable merchandise coupons. The entity
received a certain amount for each coupon redeemable from July I to December 31 of the
current year, for merchandise with certain retail price. At June 30 of the current year, how
should the entity report these coupon transactions?
a. Revenue at the merchandise's retail price
b. Unearned revenue at the merchandise retail price
c. Revenue at the cash received
d. Unearned revenue at the cash received
Which is the correct definition of a provision?
a. A liability which cannot be easily measured
b. A possible obligation arising from past event
c. A liability of uncertain timing or amount
d. An obligation to transfer funds to an entity