When a Company Has Performed a Service but Has Not

question 182

Multiple Choice

When a company has performed a service but has not yet received payment, it

• A)debits accounts receivable and credits service revenue.
• B)debits revenue from services and credits accounts receivable.
• C)debits revenue from services and credits accounts payable.
• D)makes no entry until the cash is received.

---

Definitions:

Joint Action

A collaborative effort where two or more parties work together towards a common goal, typically in a legal or governmental context.

Section 1

A specific segment or provision within a broader legal document or statute, which would require context to fully understand its implications.

Exclusive Dealing

A contractual arrangement where one party agrees to buy goods from another party on the condition that no goods will be purchased from competitors.

Manufacturer's Sales

Transactions involving the sale of goods directly from the manufacturer to buyers, bypassing intermediary retailers or wholesalers.