What Business Event Would Be Represented by a Journal Entry

question 3

Multiple Choice

What business event would be represented by a journal entry that shows a debit to cash of $500 and a credit to unearned revenue of $500?

• A) Cash has been paid out to a company that will rent the company space in the future.
• B) The company has provided services to a customer, and the cash account has been increased.
• C) Cash has been received by the company for services that have not yet been provided.
• D) The company has refunded money to a customer, because the company did not provide the services it promised.

---

Definitions:

Major Depression

An emotional health issue identified by a constant depressed state or disinterest in normal activities, leading to substantial disruption in daily routines.

Bipolar Disorder

A mental health condition marked by extreme mood swings from high (manic) to low (depressive) episodes.

Chronic Fatigue Syndrome

A medical condition characterized by extreme fatigue that cannot be explained by any underlying medical condition and does not improve with rest.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think, and how you act, characterized by feelings of sadness, loss of interest in activities, and a variety of emotional and physical problems.