Julie Lambert Has a Large Consulting Practice

question 159

Multiple Choice

Julie Lambert has a large consulting practice.New clients are required to pay one-half of the consulting fees up front.The balance is paid at the conclusion of the consultation.How does Lambert account for the cash received at the end of the engagement?

• A)Cash
•    Unearned Service Revenue
• B)Cash
•     Unearned Service Revenue
• Service Revenue
• C)Prepaid Service Revenue
•      Service Revenue
• D)No entry is required when the engagement is concluded.

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Definitions:

Change In Knowledge

The process or result of acquiring new information or understanding, altering one's perception or understanding of a topic.

Conditioned Response

A learned reaction to a conditioned stimulus that occurs because of previous conditioning, typically seen in classical conditioning experiments.

Reflexive Response

An automatic, involuntary reaction to a stimulus, not requiring conscious thought.

Stimulus

Any event or situation that evokes a response from an organism.