Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 14 - No. 29)
What is the result of recording an adjusting entry to recognize revenue that has been earned but not yet billed?
A decrease in assets and an increase in liabilities.
An increase in assets and an increase in equity.
A decrease in assets and a decrease in equity.
An increase in liabilities and a decrease in equity.
Explanation
The entry increases accounts receivable (asset) and increases service revenue (equity).
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