JUNIOR Company Inc., which operates on accrual basis accounting, hired an employee who started work on May 01, 2020. Per the companys policies, the employee became eligible to start earning paid time off (PTO) after 6 months at a rate of 10 hours per month and PTO is paid out upon termination.

When the employer pays the employee in 2023 for the PTO earned in 2022, what account will the company debit?

Wage Expense

Accrued PTO

Prepaid Expense

Cash

During the month of August the client asked you to invoice their recurring monthly invoices for August through December as they were in need of cash. How should this be handled for the business in accordance to GAAP?

invoice each customer all on one invoice with the invoice date of August; recognizing 5 months of revenue on the date of the invoice.

Invoice each customer with individual invoices for each month of service all dated in August; recognizing the revenue on the date of the invoice

Invoice each customer all on one invoice with the invoice date of August; recognizing the revenue in each month services are rendered

Invoice each customer with individual invoices for each month of service with individual invoices pre-dating them for the month of intended service

What does deferred revenue generally represent on the balance sheet?

Amounts that have been invoiced to a customer but not yet recognized as revenue

Unapplied customer payments

Projected future revenues that have not been invoiced

Refunds due to customers