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On January 1, 2020, Apple sells an IPad tablet for $2,000 including 3 years of...

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Accounting

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On January 1, 2020, Apple sells an IPad tablet for $2,000 including 3 years of future software upgrades. It is estimated that $1,910 covers the cost of the device and software provided at the time of sale and $90 covers the cost of future upgrades. Which of the following is true if Apple records the $2,000 as sales revenue at the time of the sale? Apple will be overstating revenue in 2020 and overstating liabilities at December 31, 2020. Apple will be understating liabilities at December 31, 2020 and understating EPS in 2021-2022 Apple will be overstating EPS in 2020 but EPS will be correctly stated in 2021. Apple will be understating liabilities at December 31, 2020 but future liabilities will be correct The following information is available for two firms: Redwings Blue Jays Current Assets Non-Current Assets 700,000 800,000 500,000 800,000 Current Liabilities Non-Current Liabilities 200,000 200,000 200,000 300,000 Based on the information presented, which firm is more liquid? Blue Jays. They have equal liquidity risk. Redwings

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