When a Company Has Performed a Service but Has Not

question 143

Multiple Choice

When a company has performed a service but has not yet received payment, what is the required journal entry to be recorded?

• A) Accounts Receivable - Debit; Revenue from Services - Credit
• B) Revenue from Services - Debit; Accounts Payable - Credit
• C) No entry is required until the cash is received.
• D) Revenue from Services - Debit; Accounts Receivable - Credit

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Definitions:

Information Search

The process of seeking out data and insights relevant to a specific question or decision, often a step in consumer behavior before making a purchase.

Evaluative Criteria

Standards or benchmarks customers use to judge the features or benefits of different products or services before making a decision.

Health Club

A facility that provides physical exercise equipment and programs, often including amenities such as pools, saunas, and fitness classes.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, values, or ideas simultaneously.