Reference no: EM132695608

Questions -

Q1) Received a cash advance of $3500 from a client for the tax consultancy services to be performed in the next three months. Make the journal entry to record the transaction?

a. debit, service revenue received in advance $3500 and credit, service revenue $3500.

b. debit, service revenue received in advance $3500 and credit, cash $3500.

c. debit, cash $3500 and credit, service revenue received in advance $3500.

d. debit, service revenue $3500 and credit, cash $3500.

Q2) Paid electricity for the month $1200 cash. The journal entry to record the transaction is:

a. debit, electricity payable $1200 and credit, electricity expense $1200.

b. debit, cash $1200 and credit, electricity payable $1200.

c. debit, electricity expense $1200 and credit, cash $1200.

d. debit, cash $1200 and credit, electricity expense $1200.

Q3) When a business has performed a service but has not yet received payment, it:

a. debits an asset and credits revenue.

b. debits revenue and credits an asset.

c. debits an asset and credits a liability.

d. makes no entry until the cash is received.