Your Company Received Payment Last Month for a Service That

question 68

Multiple Choice

Your company received payment last month for a service that you provided this month.How will the business activity of the current month affect the basic accounting equation?

• A)Assets will not change;liabilities (Unearned Revenue)will decrease;and stockholders' equity (Service Revenue)will increase.
• B)Assets (Cash)will increase,liabilities (Unearned Revenue)will increase,and stockholders' equity will not change.
• C)Assets (Cash)will increase,liabilities will not change,and stockholders' equity (Service Revenue)will increase.
• D)Assets (Prepaid Expenses)will decrease,liabilities will not change,and stockholders' equity (Service Revenue)will increase.

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Definitions:

Profound Amnesia

An extreme form of memory loss that obstructs the recall of fundamental personal information and past experiences.

Anterograde Amnesia

A loss of the ability to create new memories after the event that caused the amnesia, while long-term memories from before the event remain intact.

Retrograde Amnesia

The condition in which an individual loses pre-existing memories to some extent, often due to brain damage or psychological trauma.

Temporal Lobe

A region of the cerebral cortex responsible for processing auditory information and is involved in understanding language and forming memories.