If a Company Records Cash Received for Services to Be

question 137

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 total assets for the current period?

• A)Total assets will be too low.
• B)Total assets will be correct.
• C)Total assets will be too high.

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Definitions:

Data Set

A collection of data, often used for analysis, typically consisting of related sets of information.

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half are below.

Mean

The arithmetic average, found by adding a set of values and dividing the sum by the number of values in the set.

Telemarketers

Individuals or companies that market goods or services to potential customers over the phone.