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:

Profit-sharing Bonuses

A type of incentive where employees receive additional compensation based on the company's profits, encouraging ownership behavior and aligning interests.

Non-management Employees

Individuals within an organization who do not hold managerial or supervisory positions and are responsible for executing tasks and operations as directed by management.

Piece Rate Pay

A compensation system where employees are paid based on the quantity of units they produce or complete.

Psychological Connection

refers to the emotional bond between individuals, which influences their thoughts, feelings, and behaviors towards each other.