If a company provides a service and receives payment at the same time:

Question

Quizplus · Accepted Answer

When a company provides a service and receives payment at the same time, it results in an increase in cash, which is debited. At the same time, the revenue earned from the service is credited, resulting in an increase in the revenue account. Therefore, to record this transaction correctly, both the cash and revenue accounts need to be updated, resulting in two journal entries. Hence, option D is the correct choice.

If a Company Provides a Service and Receives Payment at the Same