A deferred revenue can be initially recorded either as a liability or as a revenue account, but the company must continue to use the same method consistently in the future. 

Adjusting entries are always needed when an expense has been incurred or a revenue has been earned, but neither has involved cash yet.

The time period or periodicity assumption assumes that an organization’s activities can be divided into specific time periods such as months, quarters, or years.

A deferred revenue can be initially recorded either as a liability or as a revenue account, but the company must continue to use the same method consistently in the future.

Unearned revenue accounts are accrued liabilities and, as such, should be accrued correctly by year-end in the adjustment process.

During 2017, Isaiah, Inc. provided services for cash of $21, 000 and services on credit of $15,000. The company collected accounts receivable of $8,000 and incurred operating expenses of $22,700, $14,000 of which were paid during the year. The amount of net income(loss) for the year is 

Accumulated depreciation is a contra-liability account and as such normally has a credit balance.

Isaiah, Inc. incurred $5,000 in wages for employees for the year. $4,500 of these wages were paid by the end of the year. Choose the TRUE statement. 

The process of calculating depreciation is a valuation concept, and not an allocation concept.

A deferred revenue can be initially recorded either as a liability or as a revenue account, but the company must continue to use the same method consistently in the future.