When a Company Provides Services on Account,which of the Following

question 134

Multiple Choice

When a company provides services on account,which of the following would be recorded using cash-basis accounting?

• A)Debit to Cash.
• B)Debit to Service Revenue.
• C)Credit to Unearned Revenue.
• D)No entry would be recorded.

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Definitions:

Title

Legal ownership of property, especially real estate or automobiles.

Oral Contracts

Agreements that are made verbally and are legally binding, though harder to prove than written contracts.

Written Confirmation

A document that records and verifies specific details of an agreement or transaction between two or more parties.

Merchant

An individual or company engaged in the wholesale purchase and retail sale of goods for profit.