Table of contents

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1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Revenues

Financial Accounting

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Revenues

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Multiple Choice

When adjusting gross requirements for inventory on hand and scheduled receipts, what is the resulting value called?

Deferred expenses

Net requirements

Gross profit

Accrued revenues

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Verified step by step guidance

Understand the concept of 'gross requirements': These are the total demand for an item, including customer orders and dependent demand from other items.

Learn about 'inventory on hand': This refers to the current stock available in the inventory that can be used to meet the gross requirements.

Understand 'scheduled receipts': These are the quantities of inventory expected to arrive from suppliers or production within a specific time period.

Calculate 'net requirements': Net requirements are determined by subtracting inventory on hand and scheduled receipts from the gross requirements. The formula is:

Net Requirements = Gross Requirements - Inventory on Hand - Scheduled Receipts

Recognize that the term 'net requirements' is the correct answer, as it represents the adjusted value after accounting for inventory on hand and scheduled receipts.