A gym offers one-year memberships for $99 and requires customers to pay the full amount of cash at the beginning of the membership period. For the gym, this is an example of a(n):
A) Accrued expense.
B) Accrued revenue.
C) Prepaid expense.
D) Deferred revenue.
Answer: D
Making rent payments in advance is an example of a(n):
A) Accrued revenue.
B) Accrued expense.
C) Deferred revenue.
D) Prepaid expense.
Answer: D
Receiving a utility bill for costs in the current period but delaying payment until the following period is an example of a(n):
A) Accrued expense.
B) Accrued revenue.
C) Prepaid expense.
D) Deferred revenue.
Answer: A
