When a Product or Service Is Delivered for Which a Customer

question 23

Multiple Choice

When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry includes:

• A) A debit to a revenue and a credit to a liability account.
• B) A debit to a revenue and a credit to an asset account.
• C) A debit to an asset and a credit to a revenue account.
• D) A debit to a liability and a credit to a revenue account.

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Definitions:

Organic Molecules

Molecules that contain carbon and are found in living organisms.

Metal Ions

Positively charged atoms that have lost one or more electrons, prevalent in many biological and chemical processes.

Major Split

A significant division or separation, often used to refer to a disagreement or divergence in a group or theory.