A Company That Receives Money in Advance of Performing a Service

question 110

Multiple Choice

A company that receives money in advance of performing a service. What is the journal entry for the transaction?

• A) Unearned Revenue - Debit; Accounts Payable - Credit
• B) Cash - Debit; Unearned Revenue - Credit
• C) Cash - Debit; Prepaid Fees - Credit
• D) Cash - Debit; Accounts Receivable. - Credit

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Definitions:

Leadership

Ability to direct or inspire people to attain certain goals.

Planning

The process of setting objectives, determining strategies to achieve them, and developing plans to integrate and coordinate activities.

Empowerment

The process of enabling individuals or groups to gain control, authority, and influence over their own lives or work.

Work Style

The manner or approach an individual takes towards completing tasks or organizing work, often reflecting personal preferences and strengths.