1) Received a cash advance of $3500 from a client for the tax consultancy services to be performed in the next three months. The journal entry to record the transaction is:

Select one:

a.debit, service revenue received in advance $3500 and credit, service revenue $3500.

b.debit, service revenue received in advance $3500 and credit, cash $3500.

c.debit, cash $3500 and credit, service revenue received in advance $3500.

d.debit, service revenue $3500 and credit, cash $3500.

2) Paid electricity for the month $1200 cash. The journal entry to record the transaction is:

Select one:

a.debit, electricity payable $1200 and credit, electricity expense $1200.

b.debit, cash $1200 and credit, electricity payable $1200.

c.debit, electricity expense $1200 and credit, cash $1200.

d.debit, cash $1200 and credit, electricity expense $1200.

3) When a business has performed a service but has not yet received payment, it:

Select one:

a.debits an asset and credits revenue.

b.debits revenue and credits an asset.

c.debits an asset and credits a liability.

d.makes no entry until the cash is received.