An Adjusting Entry Was Made on the Last Day of the Previous

question 176

Multiple Choice

An adjusting entry was made on the last day of the previous fiscal year debiting Accounts Receivable and crediting Service Revenue.If a reversing entry has been made,then at the time of cash collection

• A)the accountant needs to find out how much of the cash collection applies to the current period and how much applies to the previous period.
• B)the accountant will debit Accounts Receivable and credit Service Revenue.
• C)the accountant will debit Cash and credit Service Revenue.
• D)the accountant will debit Service Revenue and credit Cash.

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Definitions:

Substitute Physician

A medical doctor who temporarily fills in for another physician, often referred to as a locum tenens.

Locum Tenens

A person who temporarily fulfills the duties of another; specifically, a physician or clergyman acting temporarily for another.

Res Ipsa Loquitur

Latin, meaning “the thing speaks for itself,” which is also known as the doctrine of common knowledge.

Respondeat Superior

Latin, meaning “let the master answer,” a doctrine under which an employer is legally liable for the acts of his or her employees, if such acts were performed within the scope of the employee’s duties.