If a Company Records Cash Received for Services to Be

question 88

Multiple Choice

If a company records cash received for services to be provided in the future with a debit to Cash and a credit to Service Revenue,how will this error affect net income for the current period?

• A)Net income will be too low.
• B)Net income will be correct.
• C)Net income will be too high.

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Definitions:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Non-leadership

Describes roles or behaviors within a group or organization that do not involve leading others, focusing instead on individual contributions or following directives.

Relational Interaction

The dynamic process of communication and connection between individuals or groups, influencing relationships and social structures.

Common Goals

Objectives or targets that are shared among members of a group or team, fostering unity and collaborative efforts towards achievement.