Understanding the Impact of Eugene's Decision on Current Assets

Required: 14 1. Understand the reporting effect: How does Eugene's decision affect the reported amount of current assets and current liabilities at the end of December? 2. Specify the options: Calculate the current ratio assuming the $1 million is treated as (a) service revenue or (b) deferred revenue. 3. Identify the impact: Does Eugene's decision have an effect on First Federal Bank? 6-66 4. Make a decision: Should Eugene record the $1 million as service revenue? points 9 Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Specify the options: Calculate the current ratio assuming the $1 million is treated as (a) service revenue or (b) deferred revenue. (Round your answers to 2 decimal places.) Current Ratio 1.01 9 0.92 9 < Required 1 Required 3 >