When a service has been performed,but no cash has been received,which of the following statements is true?
A)The entry would include a debit to Accounts Receivable.
B)The entry would include a debit to Accounts Payable.
C)The entry would include a credit to Unearned Revenue.
D)No entry is required until the cash is received.

Question

Quizplus · Accepted Answer

When a service has been performed but no cash has been received, it means that the revenue has been earned but not yet realized. Therefore, the entry would include a debit to Accounts Receivable (an asset account) to record the amount owed by the customer for the service that was provided. This increases the company's assets and represents the amount that the company is entitled to receive in the future.

When a Service Has Been Performed,but No Cash Has Been