A Consultant Performs Accounting Services for a Client on 30

question 19

Multiple Choice

A consultant performs accounting services for a client on 30 June 2016 and bills the client $350,to be paid within 60 days.Payment is received on 15 August 2016.Accrual accounting is used by both parties.
-What is the journal entry made by the consultant on 30 June 2016?

• A) Dr Service revenue Cr Accounts payable
• B) Dr Accounts receivable Cr Cash
• C) Dr Accounts receivable Cr Service revenue
• D) None of the answers provided

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Definitions:

Materials Quantity Variance

A calculation that shows the difference between the actual amount of materials used and the expected amount, which can indicate issues in efficiency or procurement.

Materials Price Variance

The difference between the actual cost of materials and the standard or expected cost, used to assess cost management efficiency.

Materials Quantity Variance

Materials Quantity Variance is the difference between the expected amount of materials to produce a given output and the actual amount of materials used, highlighting efficiency in material usage.

Variable Overhead

Expenses that vary with production volume, such as utility costs in a factory.