An Adjusting Entry Was Made on the Last Day of the Previous

question 176

Multiple Choice

An adjusting entry was made on the last day of the previous fiscal year debiting Accounts Receivable and crediting Service Revenue.If a reversing entry has been made,then at the time of cash collection

• A)the accountant needs to find out how much of the cash collection applies to the current period and how much applies to the previous period.
• B)the accountant will debit Accounts Receivable and credit Service Revenue.
• C)the accountant will debit Cash and credit Service Revenue.
• D)the accountant will debit Service Revenue and credit Cash.

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Definitions:

Strict Liability

A legal doctrine that makes an individual or entity responsible for damages or harm caused by their actions, regardless of fault or negligence.

Reasonable Doubt

A standard of proof in criminal law that requires the prosecution to prove the defendant's guilt to such a degree that a reasonable person would have no question of the defendant's guilt.

Liability

A legal obligation to settle a debt or responsibility, which can arise from contracts, torts, or statutes requiring individuals or entities to compensate for losses or damages caused.

False Entries

Incorrect or misleading information entered into a record or document, particularly with the intent to deceive.