An Accountant Who Uses the Accrual Basis of Accounting Receives

question 72

Multiple Choice

An accountant who uses the accrual basis of accounting receives cash in advance for services yet to be performed. The entry to record this transaction will include a credit to which of the following accounts?

• A) Unearned Expense
• B) Unearned Service Revenue
• C) Service Revenue
• D) Prepaid Expense

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Definitions:

Reaction Formation

Disguising unconscious content by turning it into its opposite.

Repression

A psychological defense mechanism where unpleasant thoughts, feelings, or desires are excluded from conscious awareness.

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, effectively protecting themselves from uncomfortable or painful emotions.

Projection

Seeing one’s own unconscious content in others rather than oneself.