Understanding the Reporting Effect: How Does Eugene's Decision

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 0 Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Understand the reporting effect: How does Eugene's decision affect the reported amount of current assets and current liabilities at the end of December? Eugene's decision will have no effect on current assets but will understate a current liabilities. Required 2 )