When a Company Has Performed a Service but Has Not

question 119

Multiple Choice

When a company has performed a service but has not yet received payment,what is the required journal entry to be recorded?

• A) Accounts Receivable - Debit; Revenue from Services - Credit
• B) Revenue from Services - Debit; Cash - Credit
• C) Unearned Revenue from Services - Debit; Accounts Receivable - Credit
• D) Revenue from Services - Debit; Accounts Receivable - Credit

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting principles that dictate how transactions and other accounting events are reported in financial statements globally.

Construction Contracts

Agreements between parties involving the construction, alteration, or repair of buildings or structures.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services.

Indirect Costs

Overhead or administrative expenses that are not directly attributable to a specific product or service, but are necessary for the business operations.