The adjusting entry required when goods and services are provided to customer for amounts previously recorded as deferred revenues includes:
A) A debit to a liability.
B) A debit to an asset.
C) A credit to a liability.
D) A credit to an asset.
Answer: A
An example of an adjusting entry would not include:
A) Recording interest earned on bank account balances.
B) Recording the expiration of prepaid rent.
C) Recording unpaid salaries.
D) Recording the purchase of office supplies.
Answer: D
Providing goods or services to customers on account is an example of a(n):
A) Accrued expense.
B) Accrued revenue.
C) Prepaid expense.
D) Deferred revenue.
Answer: B
