part 1:

When cash is received in advance of services provided, which of the following is true?

Service revenue is credited

Unearned revenue is increased

Unearned revenue is decreased

Unearned revenue is debited

part 2:

If the likelihood of an occurrence of a contingent liability is deemed reasonably possible, what is the appropriate accounting treatment?

Nothing is required

Note disclosure only

Journalize only

Journalize and note disclosure

part 3:

All of the following statements are true except:

The leverage ratio helps to analyze a companys debt

A higher debt ratio indicates greater risk

A higher debt ratio indicates a company is financed with more debt

The times interest earned ratio measures the profitability of net income