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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Definitions:

Frequent Comments

Regular or repeated verbal or written remarks that provide feedback, observations, or criticisms about a specific subject or activity.

Motives

The reasons or desires that drive an individual to act in a particular way.

Theory X Manager

Describes a management style that assumes employees are inherently lazy and need to be closely supervised and controlled.

Worker Involvement

The participation or engagement of employees in the decision-making processes and operations of their workplace.