Betty Carson Has Performed $500 of Accounting Services for a Client

question 19

Multiple Choice

Betty Carson has performed $500 of accounting services for a client but has not billed the client as of the end of the accounting period.What adjusting entry must Betty make?

• A)Debit Cash and credit Unearned Revenue
• B)Debit Accounts Receivable and credit Unearned Revenue
• C)Debit Accounts Receivable and credit Service Revenue
• D)Debit Unearned Revenue and credit Service Revenue

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Definitions:

Value in Exchange

The worth of a good or service in comparison to other goods or services in the context of trade or commerce.

Marginal Utility

The extra pleasure or advantage gained from using an additional unit of a product or service.

Dozen Oysters

A quantity of twelve oysters, often used as a standard unit of sale in seafood markets.

Total Utility

The total satisfaction received from consuming a particular amount of goods or services.