If a Business Has Received Cash in Advance of Services

question 117

Multiple Choice

If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be

• A) debit Unearned Revenue and credit Cash.
• B) debit Unearned Revenue and credit Service Revenue.
• C) debit Unearned Revenue and credit Prepaid Expense.
• D) debit Unearned Revenue and credit Accounts Receivable.

---

Definitions:

Proxy Server

A server that acts as a go-between for an application and another server.

Network Configuration

The process of setting up a network's controls, flow, and operation to support the network communication of an organization or network operator.

Print Server

A device (a computer or a separate device) that connects to a printer used by multiple people through a network.

Physical Destruction

Physical destruction involves the complete and irreversible physical damage of media or devices to prevent the retrieval of the stored information.