If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be: a. Debit Unearned Revenue and credit Cash b. Debit Unearned Revenue and credit Revenue Earned c. Debit Unearned Revenue and credit Prepaid Expense d. Debit Unearned Revenue and credit Accounts Receivable Pixel company sold inventories on account for $900. Which journal entry records the receipt on account of those inventories. Which sequence correctly summarizes the accounting process? a. Journalize transactions, post to the accounts, prepare a trial balance b. Journalize transactions, prepare a trial balance, post to the accounts c. Post to the accounts, journalize transactions, prepare a trial balance d. Prepare a trial balance, journalize transactions, post to the accounts Which of the following is an example of a deferral(or prepaid) adjusting entry? a. Recording utility expense but not yet paid. b. Recording the depreciation expense for the furniture during the period. c. Recording revenue that has been earned but not yet received. d. Recording interest expense incurred on a notes payable not due until next year. Which of the following is true of accrual basis accounting and cash basis accounting? a. Accrual accounting is not allowed under GAAP b. Cash accounting records revenue when earned c. Accrual accounting records expense when incurred d. All of the above are true. Kirkland gains a client who prepays $900 for a package of six physical training sessions Kirkland collects the $900 in advance and will provide the training later. After four training sessions, what should Kirkland report on its income statement assuming it uses the accrual basis accounting method? a. Service revenue of $900 b. Service revenue of $600 c. Unearned service revenue of $600 d. Cash of $300