Robert Rogers, CPA, Performed Accounting Services for a Client in December

question 147

Multiple Choice

Robert Rogers, CPA, performed accounting services for a client in December. A bill was mailed to the client on December 30. Roberts received a check by mail on January 5. As per the revenue recognition principle, the related account that should appear on the balance sheet as of December 31 is:

• A)Prepaid Expense.
• B)Accounts Receivable.
• C)Unearned Revenue.
• D)Accounts Payable.

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Definitions:

Fair Labor Standards Act

A U.S. law establishing minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting employees in the private sector and in federal, state, and local governments.

Federal Minimum Wage

The lowest hourly wage that employers can legally pay their workers, as mandated by federal law in the United States.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.