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:

Outline Group

A feature in software that allows users to manage and organize data or text into collapsible sections.

Status Bar

A graphical control element found at the bottom of applications or documents, displaying information relevant to the current state or context, such as zoom level or cursor position.

Outline Data

The structure and hierarchy of data that has been organized in an outline format, typically showing the relationships between different levels of information.

Group Button

A control element in user interfaces that allows for the collective manipulation of objects or elements, such as aligning or grouping multiple items in a document or presentation.