If a Business Has Received Cash in Advance of Services

question 137

Multiple Choice

If a business has received cash in advance of services performed and increases a liability account the adjustment needed after the services are performed will be:

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

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Definitions:

Merit Pay

A compensation strategy that rewards employees based on their performance and achievements, rather than on seniority or hours worked.

Disadvantages

The negative or less favorable aspects of a situation, decision, or condition.

Performance-Based Pay System

A compensation system where an employee's pay is based on their performance and achievements rather than a fixed salary.

Strategic Objectives

Goals set by an organization, designed to guide its long-term direction and ensure its growth, sustainability, and relevance in the market.