In November,cash Is Received in Advance of Rendering Services

question 186

Multiple Choice

In November,cash is received in advance of rendering services.Assuming that the services have been performed by December 31,the adjusting entry would be

• A) Unearned Service Revenue - Debit; Cash - Credit
• B) Cash - Debit; Service Revenue - Credit
• C) Unearned Service Revenue - Debit; Service Revenue - Credit
• D) Service Revenue - Debit; Prepaid Services - Credit

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Definitions:

Differentiated

Describes products or services that are distinct from those of competitors in at least one aspect, as perceived by the market.

Pricing Strategy

An approach or plan used by a business to determine the best price for its products or services to maximize profits and meet market demands.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share, leading to limited competition.

Marginal Cost

Marginal cost refers to the variation in total production expenses when there is an increase of one unit in the quantity produced.