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:

Current Value

The present worth or market price of an asset or investment.

Control of the Firm

Refers to the ability to influence or outright decide on the broad directions and decisions of a company, usually through possession of a significant portion of voting shares.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and potentially the right to vote on corporate matters.

Board of Directors

A group of individuals elected by the shareholders of a company to oversee and make decisions on major issues and policies.