Receiving assets from customers before services are performed results in: Prepai
ID: 2486766 • Letter: R
Question
Receiving assets from customers before services are performed results in: Prepaid Assets. Service Revenue. Unearned Revenues. Accounts Receivable. Expenses normally carry a______balance and are shown in the_______. Debit; Statement of stockholders' equity. Debit; Income statement. Credit; Balance sheet. Debit; Balance Sheet. Childers Service Company provides services to customers totaling S3,000, for which it billed How would the transaction be recorded? Debit Cash $3,000, credit Service Revenue $3,000. Debit Accounts Receivable S3,000, credit Service Revenue $3,000. Debit Accounts Receivable $3,000, credit Cash $3,000. 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: Revenue should be recognized in the period the cash is received. Revenue should be recognized in the period earned. Revenue should be recognized in the balance sheet. Revenue is a component of common stock.Explanation / Answer
5)C.Unearned revenue
6)option B
7)Option B. Since it provided services but not collected cash
8)Option C
9)option B
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