An accountant who keeps his books using accrual accounting performs a service but does not receive payment at the time the service is performed. The entry made by the accountant will require a credit to:

Question

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In accrual accounting, revenues are recognized when earned, regardless of when the payment is received. Therefore, when a service is performed but not yet paid for, the accountant would credit Service Revenue to recognize the revenue earned from the service.

An Accountant Who Keeps His Books Using Accrual Accounting Performs