If a Business Has Received Cash in Advance of Services

question 111

Multiple Choice

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

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

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Definitions:

Retina

The light-sensitive layer of tissue at the back of the inner eye, responsible for converting light into neural signals for vision.

Time Zones

Geographically based divisions where the local time is adjusted from the standard time, primarily influenced by the rotation of the earth relative to the sun.

Travel East

The action of moving in an easterly direction, often associated with adjusting to time zone changes and potentially experiencing jet lag.

Travel West

The action or process of moving or being transported towards the west.