An Accountant Who Uses the Accrual Basis of Accounting Receives

question 81

Multiple Choice

An accountant who uses the accrual basis of accounting receives cash in advance for services yet to be performed.The entry to record this transaction will include a credit to which of the following accounts?

• A) Unearned Service Revenue
• B) Prepaid Expense
• C) Unearned Expense
• D) Service Revenue

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Definitions:

Ideology

a system of ideas, values, and beliefs that influences the way individuals view the world and their place in it, often associated with political or social movements.

False Consciousness

A term used in Marxist theory to describe the way in which material, ideological, and institutional processes mislead members of the proletariat about their real interests.

Superstructure

All of the things that society values and aspires to once its material needs are met (e.g., religion, politics, law).

Exploitation

The act of unfairly or unjustly using someone or something for one's own benefit, often at the expense of the exploited party's welfare.