Jackson Tucker Has a Large Consulting Practice

question 82

Multiple Choice

Jackson Tucker has a large consulting practice.New clients are required to pay one-half of the consulting fees up front.The balance is paid at the conclusion of the consultation.Dillion Paiva a new client paid $15000 on August 1 and another $15000 on completiton of the engagement on Sept 1.Use the following tabular analysis to record the receipt of $15000 on Sept 1

• A)Increase Cash $15000 and decrease Unearned Revenue $15000.
• B)Increase Cash $15000 decrease Unearned Revenue $15000 and increase Service Revenue $30000.
• C)Increase Service Revenue $15000 and decrease Unearned Revenue $15000.
• D)Increase Cash $15000 decrease Unearned Revenue $15000 and increase Service Revenue $15000.

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Definitions:

Management Change

The process, initiative, or event that involves a significant shift in a company's management structure or strategy.

Business Unit

A segment within a larger organization that operates independently with its own strategy and financial objectives.

Profit Components

Specific elements that contribute to a company's profit, including revenue, cost of goods sold, operating expenses, and other income or costs.

Manager Responsibility

The obligation of managers to plan, control, and make decisions that align with the strategic objectives and financial performance of the organization.