An entity has recognised revenue for which the services have not been performed but the cash has
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Question:
An entity has recognised revenue for which the services have not been performed but the cash has been received. Which of the following is the correct adjusting entry?
a. Dr Revenue
Cr Cash
b. Dr Revenue received in advance
Cr Cash
c. Dr Liability
Cr Revenue
d. Dr Revenue
Cr Revenue received in advance
e. Dr Cash
Cr Revenue
Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance show for this error?
a. Too much for cash
b. Too much for liabilities
c. Too much for expenses
d. The trial balance will not balance
e. None of the above
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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