An Adjusting Entry Involving Recognition of Accrued Revenue Is Necessary

question 110

Multiple Choice

An adjusting entry involving recognition of accrued revenue is necessary at the end of March in which of the following situations?

• A)Midwood Consultants received payment in February for consulting services rendered in March.
• B)Midwood Consultants began working for a client on March 15;bills will be sent monthly beginning April 15.
• C)Midwood Consultants made payment in January for office rent for the first three months of the year.
• D)On March 31,a major customer paid his bill for a consulting job completed in February.

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Definitions:

Poorly Defined

Referring to a concept, term, or condition that lacks clear explanation or boundaries, leading to ambiguity and misunderstanding.

Benefit From Conservation

The advantages gained from the responsible management and preservation of natural resources, including environmental sustainability and potential economic savings.

Resources

Inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Unprofitable

Lacking in profit or not resulting in financial gain.