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:

Productivity

The measure of output per unit of input, reflecting the efficiency of production.

Discriminates

The act of unjustly distinguishing or treating people differently based on characteristics such as race, age, gender, etc.

Higher Costs

Situations in which the expenses related to producing or obtaining goods and services increase, leading to a rise in prices or a squeeze on profit margins.

Labor-Market Discrimination

The differential treatment of individuals in the labor market based on race, gender, religion, age, sexual orientation, or other non-relevant factors that reduces prospects for equal opportunity employment.