Client Sultan pays Amwaj Co. OMR 1,000 in December for Amwaj to perform services for Ahmed in 45 days. Amwaj uses the accrual basis of accounting. In December Amwaj will debit Cash for OMR 1,000. What will be the other account involved in the December accounting entry prepared by Amwaj (and what type of account is it)? Accounts Receivable (asset) Service Revenues (revenue) Prepaid Services (asset) Unearned Revenues (liability)
Client Sultan pays Amwaj Co. OMR 1,000 in December for Amwaj to perform services for Ahmed in 45 days. Amwaj uses the accrual basis of accounting. In December Amwaj will debit Cash for OMR 1,000. What will be the other account involved in the December accounting entry prepared by Amwaj (and what type of account is it)? Accounts Receivable (asset) Service Revenues (revenue) Prepaid Services (asset) Unearned Revenues (liability)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Client Sultan pays Amwaj Co. OMR 1,000 in December for Amwaj to perform services for Ahmed in 45 days. Amwaj uses the accrual basis of accounting. In December Amwaj will debit Cash for OMR 1,000. What will be the other account involved in the December accounting entry prepared by Amwaj (and what type of account is it)?
Accounts Receivable (asset)
Service Revenues (revenue)
Prepaid Services (asset)
Unearned Revenues (liability)
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