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Technician A says a variable-diameter pulley (VDP) system operates using two variable diameter pulleys with either a steel or a rubber belt between them. Technician B says the rubber belt has a limited service life in an automobile, so most manufacturers use them. Who is correct?
Unearned Legal Fees
Money received by an entity for legal services yet to be performed, recognized as a liability until the services are rendered.
Adjusting Entry
A journal entry made at the end of an accounting period to update the ledger accounts for accruals, deferrals, and other adjustments necessary to ensure accurate financial reports.
Revenue Account
A revenue account tracks the income generated from a company's primary operations, such as sales of goods and services, during an accounting period.
Unearned Management Fees
Income received by a business for services that have not yet been rendered, considered a liability until the service is provided.
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