Which of the Following Cases Would Require an Adjusting Entry

question 20

Multiple Choice

Which of the following cases would require an adjusting entry to accrue revenue?

• A)a client has paid for services in advance
• B)customers have been billed for services but not yet paid
• C)capital stock has been issued for cash but not yet paid for
• D)interest on a note receivable will not be received until the note is paid off next year

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Definitions:

Strategic Plans

Long-term goals and the actionable steps designed to achieve an organization's objectives.

Business Plans

Documents that outline a company's strategy, financial forecasts, market analysis, and operational objectives.

Mission Statement

A formal summary of the aims and values of a company, organization, or individual, guiding its decisions and strategies.

Business

An organization or economic system where goods and services are exchanged for one another or for money.