In November,cash Is Received in Advance of Rendering Services

question 186

Multiple Choice

In November,cash is received in advance of rendering services.Assuming that the services have been performed by December 31,the adjusting entry would be

• A) Unearned Service Revenue - Debit; Cash - Credit
• B) Cash - Debit; Service Revenue - Credit
• C) Unearned Service Revenue - Debit; Service Revenue - Credit
• D) Service Revenue - Debit; Prepaid Services - Credit

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Definitions:

Gallbladder

A small, pear-shaped organ located beneath the liver, which stores and concentrates bile produced by the liver.

Bile

A digestive fluid produced by the liver and stored in the gallbladder, that aids in the digestion and absorption of fats in the small intestine.

Common Bile Duct

A duct in the digestive system that conveys bile from the liver and gallbladder to the duodenum.

Cystic Duct

A short duct that connects the gallbladder to the common bile duct, which then carries bile to the intestine.