When A Company Performs A Service But Has Not Yet Received Payment, It

Generally the accounting period consists of 12 months. However the beginning of the accounting period differs according to the company. For example one company may use the regular calendar year January to December as the accounting year while another entity may follow April to March as the accounting period.

What is an example of accounts receivable?

Accounts receivable is a current asset account that keeps track of money that third parties owe to you. Again these third parties can be banks companies or even people who borrowed money from you. One common example is the amount owed to you for goods sold or services your company provides to generate revenue.

What is the right side of AT account?

credit side
T Accounts Explained The left side of the Account is always the debit side and the right side is always the credit side no matter what the account is.

When payment is received for services not yet rendered no entry is recorded until that service has been rendered?

when a company receives a product previously ordered a recordable transaction has occurred. When payment is received for services not yet rendered no entry is recorded until that service has been rendered. Stock account is debited.

When a company receives a service prior to making payment for that service it is called a n?

Receiving cash in advance means that the business receives cash from a customer before the company provides the merchandise or services being sold to the customer. This creates an obligation or a liability to the company. We call this liability “unearned revenue.” Liabilities increase and assets (i.e. cash) increase.

When a customer pays for a service before it has been provided?

When a customer pays a business for services before they are performed it is known as a customer deposit.

When a business performs services for cash the effects on the accounting equation are to?

The effect on the basic accounting equation of performing services for cash are to: increase assets and increase stockholders’ equity.

Is a list of accounts with their balances at a given time?

A trial balance is a list of accounts and their balances at a given time.

Which of the following is a business event that is not considered a recordable transaction?

An accounting transaction is a business activity or event that causes a measurable change in the accounting equation. An exchange of cash for merchandise is a transaction. Merely placing an order for goods is not a recordable transaction because no exchange has taken place.

Which of the following accounts would not appear in a closing entry?

Only revenue expense and dividend accounts are closed—not asset liability Common Stock or Retained Earnings accounts.

Which of the following accounts will not affect owner’s equity?

Answer: Similarly if the asset is financed the increase in the asset account is offset by the increase in the liability account (e.g. note payable) with no effect on owners’ equity. In this way the accounting equation always stays in balance.

Which of the following is not an accounting transaction?

An accounting transaction is a business event having a monetary impact on the financial statements of a business. It is recorded in the accounting records of the business. An employee is dismissed from the job does not have any monetary impact so it is not a transaction.

How do you record dividends received?

The journal entry to record the declaration of the cash dividends involves a decrease (debit) to Retained Earnings (a stockholders’ equity account) and an increase (credit) to Cash Dividends Payable (a liability account).

Does Amazon pay a dividend?

Amazon doesn’t pay dividends to its stockholders which has been on since its inception. Amazon’s major promise to stockholders has always hinged on its potential business growth and expansion into new markets. … At this stage stockholders can sell a part of their stock holding for good returns.

Is dividend an income?