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Receiving assets from customers before services are performed results in:
O Prepaid Assets.
O Service Revenue.
O Unearned Revenues.
O Accounts Receivable.

Expenses normally carry a______balance and are shown in the_______.
O Debit; Statement of stockholders' equity.
O Debit; Income statement.
O Credit; Balance sheet.
O Debit; Balance Sheet.

Childers Service Company provides services to customers totaling S3,000, for which it billed How would the transaction be recorded?
O Debit Cash $3,000, credit Service Revenue $3,000.
O Debit Accounts Receivable S3,000, credit Service Revenue $3,000.
O Debit Accounts Receivable $3,000, credit Cash $3,000.
O Debit Service Revenue $3,000, credit Accounts Receivable $3,000.

Assume that cash is paid for rent to cover the next year. The appropriate debit and credit are: Debit Rent Expense, credit Cash. Debit Prepaid Rent, credit Rent Expense. Debit Prepaid Rent, credit Cash. Debit Cash, credit Prepaid Rent. The revenue recognition principle states that:
O Revenue should be recognized in the period the cash is received.
O Revenue should be recognized in the period earned.
O Revenue should be recognized in the balance sheet.
O Revenue is a component of common stock.

Sagot :

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