On October 31 of the Current Year,a Contract Was Signed

question 128

Multiple Choice

On October 31 of the current year,a contract was signed and a cheque received for services to be performed by October 31 of the following year.The Unearned Service Revenue account was credited for $4,800.Assuming services were performed evenly during the remainder of the year,the adjusting entry on December 31 will involve a:

• A) credit to Unearned Service Revenue $800
• B) credit to Service Revenue for $4,000
• C) credit to Service Revenue $800
• D) debit to Unearned Service Revenue $4,000

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Definitions:

Economic Theory

The study and understanding of how economies work, encompassing a wide array of concepts and principles regarding wealth production and distribution.

Predominant Change

A major or primary alteration in something, such as an organization, system, or society's way of operation.

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The United States' 40th commander-in-chief from 1981 to 1989, famous for his right-wing policies and contributing to the conclusion of the Cold War.

Liberal Democrat

A member of a political party or ideology that combines liberal policies on social issues with democratic principles.