Use the Information Above to Answer the Following Question

question 122

Multiple Choice

Use the information above to answer the following question.Assuming Disco World adjusts its accounts only at its December 31 year end,what entry must Disco World make to account for the services provided through that date?

• A) Debit Cash and credit Dance Lessons Revenue for $3,000
• B) Debit Unearned Revenue and credit Dance Lessons Revenue for $4,500
• C) Debit Unearned Revenue and credit Dance Lessons Revenue for $3,000
• D) Debit Dance Lessons Revenue and credit Unearned Revenue for $3,000

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Definitions:

Aggregate Supply Curve

A graphical representation showing the total quantity of goods and services that producers in an economy are willing and able to supply at various price levels.

Keynesian Region

An economic concept from Keynesian theory suggesting ranges of output levels where total spending is sensitive to changes in the level of income, affecting unemployment levels.

Classical Theory

An economic theory emphasizing free markets, competition, and the idea that supply and demand will naturally regulate the economy.

Flexible Interest Rates

Interest rates that can change over the duration of a loan or savings account, responding to market conditions.