Tom See Has Performed $4000 of CPA Services for a Client

question 114

Multiple Choice

Tom See has performed $4000 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Tom make?

• A) Debit Cash and credit Unearned Service Revenue
• B) Debit Accounts Receivable and credit Unearned Service Revenue
• C) Debit Accounts Receivable and credit Service Revenue
• D) Debit Unearned Service Revenue and credit Service Revenue

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Definitions:

Realistic Conflict Theory

The view that as competition increases among social groups for scarce resources, so do prejudice, discrimination, and hatred.

Prejudice

Hostile or negative attitudes toward people in a distinguishable group, based solely on their membership in that group, often rooted in stereotypes and unfounded beliefs.

Realistic Conflict Theory

A social psychological model that explains intergroup conflicts, prejudice, and discrimination as resulting from actual competition between groups for desired resources.

Scarce Resources

Resources that are limited in availability and cannot satisfy all the demands placed on them by humans.