Betty Carson, CPA, billed her clients last month for services performed. She later receives payments from her clients. What entry will Betty make to record the transaction upon receipt of the payments? A) Debit Unearned Revenue and credit Service Revenue B) Debit Cash and credit Accounts Receivable C) Debit Accounts Receivable and credit Service Revenue D) Debit Cash and credit Service Revenue The revenue recognition principle dictates that revenue should be recognized in the accounting records A) when cash is received. B) when it is earned. C) at the end of the month. D) in the period that income taxes are paid. An adjusting entry A) affects two balance sheet accounts. B) affects two income statement accounts. C) affects a balance sheet account and an income statement account. D) is always a compound entry. Accumulated Depreciation is A) an expense account. B) a stockholders' equity account. C) a liability account. D) a contra asset account. According to the accounting concept, depreciation is the process of A) valuing an asset at its fair market value. B) increasing the value of an asset over its useful life in a rational and systematic manner. C) allocating the cost of an asset to expense over its useful life in a rational and systematic manner. D) writing down an asset to its real value each accounting period. An accumulated depreciation account A) is a contra-liability account. B) increases on the debit side. C) is offset against total assets on the balance sheet. D) has a normal credit balance