QUESTION 21 The following events happened at Audit Inc. about accounting service with a customer. December 1, 2019 Audit Inc. was contacted by a customer about accounting services December 12, 2019 The customer signed a contract about the details of the service. December 15, 2019 The company received cash in advance from customers $6,000 December 20, 2019 Audit Inc. provided the accounting service. Under accrual basis accounting, what is the appropriate day to record the revenue related to the accounting service? A. December 1, 2019 B. December 15, 2019 OC. December 20, 2019 D. December 12, 2019 QUESTION 17 Car Wash Inc. purchased car wash equipment by signing long term notes payable for $50,000. This transaction would be recorded as: O A. Cash Equiment $50,000 $50,000 $50,000 B. Notes payable Equiment $50,000 $50,000 Equipment Cash $50,000 D $50,000 Equipment Notes payable $50,000 QUESTION 11 When a company pays rent for the current month, what is the effect on the company's accounts? A. Rent expense increases and cash decreases. B. Rent expense increases and cash increases C. Prepaid rent increases and cash decreases. D. Prepaid rent increases and cash increases. QUESTION 12 Which of the following accounts increases by debit? A. Service revenue B. Accounts payable C. Equipment D. Deferred revenue