Adams Company Recorded the Following Journal Entry on March 2,2018 $\begin{array}{|l|r|r|}\hline\text { Cash } & 8,500 \\\hline \text { Unearned Revenue } & & 8,500 \\\hline\end{array}$

question 152

Multiple Choice

Adams Company recorded the following journal entry on March 2,2018. $\begin{array}{|l|r|r|}\hline\text { Cash } & 8,500 \\\hline \text { Unearned Revenue } & & 8,500 \\\hline\end{array}$
From the journal entry above,identify the transaction on March 2,2018.

• A) Adams purchased goods worth $8,500 and signed a one-year note for the same amount.
• B) Adams sold goods for $8,500 cash.
• C) Adams received $8,500 for services to be performed in a later period.
• D) Adams paid $8,500 for services to be received at a later date.

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Definitions:

Subsidiaries

Companies that are controlled by another company, known as the parent company, through the ownership of more than half of their voting stock or through other control mechanisms.

Directors

Individuals appointed or elected to oversee the management and make strategic and policy decisions for a corporation or organization.

Key Management Personnel

Individuals who have authority and responsibility for planning, directing, and controlling the activities of an entity, typically including the company’s directors and senior executives.

Significant Influence

The power to participate in the financial and operating policy decisions of an entity but is not control or joint control over those policies.