If a Business Has Received Cash in Advance of Services

question 235

Multiple Choice

If a business has received cash in advance of services performed and credits a liability account the adjusting entry needed after the services are performed will be

• A) debit Unearned Service Revenue and credit Cash.
• B) debit Unearned Service Revenue and credit Service Revenue.
• C) debit Unearned Service Revenue and credit Prepaid Expense.
• D) debit Unearned Service Revenue and credit Accounts Receivable.

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