Unearned Revenue Was $600 at the End of February and $750

question 194

Multiple Choice

Unearned Revenue was $600 at the end of February and $750 at the end of March.Service Revenue was $4,200 for the month of March.How much cash was received from revenue during March?

• A) $5,550
• B) $4,050
• C) $2,850
• D) $4,350

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Definitions:

Selling Receivables

The process of selling a company's accounts receivable to a third party to improve liquidity and reduce the risk of uncollectible debts.

Voucher System

A control mechanism in accounting that requires all company expenditures to be documented with vouchers, supporting the authenticity of transactions.

Accounts Receivable

Outstanding receivables from clients to a business for supplied products or executed services awaiting payment.

Internal Control

Internal Control encompasses the policies, procedures, and actions implemented by a company to ensure the integrity of financial reporting, compliance with laws and regulations, and effective and efficient operations.