Unearned revenue is classified as

Correct Answer: Allocation

Explanation:

Depreciation is a process of cost allocation, not valuation. In accounting, the term depreciation refers to the allocation of cost of a tangible asset to expense to the periods in which the asset is expected to be used to obtain the economic benefit.

 

In brief, Depreciation is fall in the value of assets due to wear and tear over a period of time, it is a loss.

Correct Answer: Accounts-receivable financing is a type of asset-financing arrangement in which a company uses its receivables ? outstanding invoices or money owed by customers ? to receive financing when a business sells its AR (accounts receivable) to a factoring company and receives short-term business funding in return, this is what called as Accounts Receivable Financing How it works :: Business-to-business sales are often offered with payment terms of 30, 60 or 90 days The buyer receives the product, but doesn't submit payment until the mutually agreed-upon date The seller records the sale as revenues and increases the accounts receivable by the amount of the sale When the payment arrives, the seller decreases the accounts receivable and increases cash Accounts receivable financing allows the seller to get the cash immediately by selling the receivable to a third party This is called factoring

Correct Answer: Enterprise software is expressly built to allow companies to mimic their unique business practices.

Explanation:

Enterprise systems (ES) are large-scale application software packages that support business processes, information flows, reporting, and data analytics in complex organizations.

Correct Answer: The persons whose primary investing objective is to preserve capital while generating a tax-free income stream, then municipal bonds are worth considering Municipal bonds (munis) are debt obligations issued by government entities When you buy a municipal bond, you are loaning money to the issuer in exchange for a set number of interest payments over a predetermined period At the end of that period, the bond reaches its maturity date, and the full amount of your original investment is returned to you Types of Municipal Bonds : Municipal bonds come in the following two varieties: 1 General obligation bonds (GO) 2 Revenue bonds General obligation bonds, issued to raise immediate capital to cover expenses, are supported by the taxing power of the issuer Revenue bonds, which are issued to fund infrastructure projects, are supported by the income generated by those projects Both types of bonds are tax exempt and particularly attractive to risk-averse investors due to the high likelihood that the issuers will repay their debts

Correct Answer: added to the bank balance

Explanation:

A deposit in transit is cash (currency, coins, checks, electronic transfers) that a company has received and is rightfully reported as Cash on its balance sheet, but does not appear on the bank statement until a later date.

Correct Answer: consumption/income

Explanation:

The average propensity to consume (APC) is the ratio of consumption expenditures (C) to disposable income (DI), or APC = C / DI. 

 

Hence, APC = consumption/income.

Correct Answer: Accounts receivable is the amount to be received by the seller from the customer Hence, it comes under asset

Correct Answer: The insured pays a premium for a specified number of years.

Correct Answer: spreading an investment across many diverse assets will eliminate some of the total risk

Explanation:

The principle of diversification tells us that spreading an investment across many diverse assets will eliminate some of the total risk.

Correct Answer: debt