Right Style Received a $1000 Advance Payment from a Customer

question 31

Multiple Choice

Right Style received a $1000 advance payment from a customer for work to be carried out in the next accounting period. Which of the following is the correct accounting entry to initially record the $1000?

• A) Debit bank $1000; credit unearned income $1000
• B) Debit unearned income $1000; credit bank $1000
• C) Debit bank $1000; credit accounts payable $1000
• D) Debit income earned $1000; credit bank $1000

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Definitions:

Total Quality Management

A management approach focused on continuous improvement of processes, products, and services by involving all members of an organization.

Contingency Theory

A leadership theory that suggests the effectiveness of a leader is contingent upon how well the leader's style matches the context or situation.

Consumer Taste

Refers to the preferences, likes, and dislikes of customers that influence their buying behavior.

Behavioural Management Approaches

These approaches focus on understanding and influencing employee behavior through various techniques and strategies.