When a Company Has Performed a Service but Has Not

question 69

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

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Definitions:

Financial Statements

Documents that provide an overview of a business or individual's financial condition, including balance sheets, income statements, and cash flow statements.

Common Shares

Equity investments that represent ownership interests in a corporation, with rights to share in the company's profits through dividends and/or capital appreciation.

Quick Ratio

A measure of a company's short-term liquidity, calculating its ability to meet short-term obligations with its most liquid assets.

Financial Statements

Compiled financial data reports that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.