Assuming the entity already render its services after 6 months from collecting the advance payment made by the client, what is the proper credit to this transaction? a.) Accounts Payable b.) Unearned Revenue c.) Owner’s Equity d.) Service Revenue

Assuming the entity already render its services after 6 months from collecting the advance payment made by the client, what is the proper credit to this transaction? a.) Accounts Payable b.) Unearned Revenue c.) Owner’s Equity d.) Service Revenue

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 10MC: Which account would be credited when closing the account for rent expense for the year? A. Prepaid...

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Question

Assuming the entity already render its services after 6 months from collecting the advance payment made by the client, what is the proper credit to this transaction?

a.) Accounts Payable

b.) Unearned Revenue

c.) Owner’s Equity

d.) Service Revenue

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