What Would Be the Account Balance in the Service Revenue

question 184

Multiple Choice

What would be the account balance in the Service Revenue account after the following transactions,assuming a zero beginning balance?

• A)$17,400
• B)$10,900
• C)$14,400
• D)$ 9,000
• E)$15,900

---

Definitions:

Liability-Revenue Relationship

The association between a company's liabilities and its ability to generate income, impacting financial performance.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed.

Adjusting Entries

Entries documented in financial records at the end of each accounting period for the purpose of allotting earnings and expenditures to the timeframe in which they occurred.

Unearned Revenues

Liabilities representing payments received for goods or services that have not yet been delivered or performed.