Explanation/Reference:

A basic principle of TOC analysis is that short-term profit maximization requires maximizing the contribution margin through the constraint, called the throughput margin or throughput contribution.

If the lease is a finance lease, both the asset and the obligation for future payments are
recorded. The entity would have current assets of US $100, debt of US $175$100 + $75), fixed assets of US $175$100 + 175), and equity of US $100. Hence, the debt-to-assets ratio would be 64%US $175 275).

A deferred revenue is a revenue item that has been received but has not met the recognition criteria, The journal entry described in the question is an adjusting entry to transfer an amount from the revenue account to a liability deferred revenue) account. The initial collection of cash in advance from the tenant was apparently recorded by a credit to revenue. An adjusting entry is for required at year-end to transfer any remaining amount that does not qualify for revenue recognition.