Two Sisters Operate a Bed and Breakfast on the Coast

question 86

Multiple Choice

Two sisters operate a bed and breakfast on the coast of Maine.As customers make reservations they are required to pay cash in advance equal to one-half of the rate for their stay.How should the sisters record the cash received as reservations are made?

• A)Increase Cash and Unearned Service Revenue.
• B)Increase Cash and Service Revenue.
• C)Decrease Unearned Service Revenue and increase Service Revenue.
• D)Increase Cash and Sales Revenue.

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Definitions:

Sinusitis

Inflammation of the cranial sinuses in the head.

Otitis Media

An inflammation of the middle ear, typically associated with fluid buildup and often causing earache and temporary hearing loss.

Bronchitis

An inflammation of the lining of the bronchial tubes, which carry air to and from the lungs, often resulting in coughing and difficulty breathing.

Aortic Bodies

Small clusters of chemoreceptive cells located near the arch of the aorta that detect changes in the blood's oxygen, carbon dioxide, and pH levels.