An Accountant Has Debited an Asset Account for $500 and Credited

question 10

Multiple Choice

An accountant has debited an asset account for $500 and credited a revenue account for $1,000. What can be done to complete the recording of the transaction?

• A) Debit another asset account for $500.
• B) Debit a shareholders' equity account for $500.
• C) Nothing further must be done.
• D) Credit a different asset account for $500.

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Definitions:

Supplies

Items or materials used in the daily operations of a business.

Unearned Revenue

Money received by a business for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.

Services Revenue

Revenue generated from providing services, as opposed to selling goods or products.

Asset Account

An account that records the value of an entity's resources, such as cash, equipment, inventory, and property.