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

---

Definitions:

Warranty

A guarantee from a seller to a buyer that a product or service meets certain quality and performance standards.

Mitigate Loss

Actions taken to reduce the severity or impact of a loss or damage, often a duty in contractual contexts.

Consideration

In contract law, something of value that is given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Damages

Financial compensation ordered by a court to be paid to a person who has suffered loss or harm due to the unlawful act or negligence of another.