Your Company Receives Advance Payment in October for Services That

question 162

Multiple Choice

Your company receives advance payment in October for services that are provided during November.Which of the following statements is correct?

• A)A liability is recorded in October and revenue will be recorded in November.
• B)Revenue is recorded in October and an expense will be recorded in November.
• C)An expense is recorded in October and revenue will be recorded in November.
• D)Revenue and expenses are recorded in October.

---

Definitions:

Being Studied

Refers to the subject or phenomena under observation or examination in a research setting.

Elton Mayo

An Australian psychologist and organizational theorist best known for his work in the Hawthorne Studies, which examined how various factors in the work environment affected employee productivity and morale.

Bias

A tendency to lean in a certain direction, often to the detriment of an open mind; prejudice in favor of or against one thing, person, or group compared with another.

Theoretical Incoherence

A lack of logical consistency in the framework of a theory, leading to contradictions or an inability to adequately explain phenomena.