When a Service Has Been Performed but No Cash Has

question 16

Multiple Choice

When a service has been performed but no cash has been received, which of the following statements is true?

• A)No journal entry is made.
• B)The entry includes a debit to accounts payable.
• C)The entry includes a credit to unearned revenue.
• D)The entry includes a debit to accounts receivable.

---

Definitions:

Labour Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor.

Standard Labour Rate

The predetermined cost associated with labor per unit of time, used as a benchmark for budgeting and cost control.

Actual Total Labour Cost

The actual amount spent on wages and salaries for employees directly involved in the production process.

Actual Hours

The real number of hours worked or spent on a specific task, project, or production process.