10.ABC Co. received $1,000 in December for services it will perform in the following month. ABC uses the accrual basis of accounting. In December ABC debited Cash for $1,000. What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)?Accounts Receivable (asset) Prepaid Services (asset) Service Revenues (revenue) Unearned Revenues (liability)

On the basis of accrual concept for accounting in revenue should be recognized when it is received…

Answered: ABC Co. received $1,000 in December for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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10.
ABC Co. received $1,000 in December for services it will perform in the following month. ABC uses the accrual basis of accounting. In December ABC debited Cash for $1,000. What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)?

Accounts Receivable (asset)

Prepaid Services (asset)

Service Revenues (revenue)

Unearned Revenues (liability)

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