When a Service Has Been Performed,but No Cash Has Been

question 68

Multiple Choice

When a service has been performed,but no cash has been received,which of the following statements is true?

• A) The entry would include a debit to Accounts Receivable.
• B) No journal entry would be made.
• C) The entry would include a debit to Accounts Payable.
• D) The entry would include a credit to Unearned Revenue.

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Definitions:

Cash Account

An account where all transactions are made in cash, including receipts and payments.

Bank Reconciliation

Bank reconciliation is the process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy.

Internal Control

Strategies and methods adopted by a business to maintain the accuracy of its financial and accounting records, encourage responsibility, and deter dishonest practices.

Detection of Errors

The process of identifying and correcting mistakes in financial records or transactions.