Gce Model Questions Vol1 2021 Financial Accounting Question 3

Practice objective / multiple choice question 3 from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 3 GCE_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

A business receives an advance payment of \(£4,000\) for services to be performed evenly over the next four months. At the end of the first month, how much revenue should be recognised and what adjusting journal entry is required?

Answer Options

Correct Answer A. Revenue recognised £1,000; journal entry - Debit Unearned Revenue £1,000, Credit Revenue £1,000
B. Revenue recognised £1,200; journal entry - Debit Unearned Revenue £1,200, Credit Revenue £1,200
C. Revenue recognised £800; journal entry - Debit Unearned Revenue £800, Credit Revenue £800
D. Revenue recognised £1,500; journal entry - Debit Unearned Revenue £1,500, Credit Revenue £1,500
Correct Answer
A
Correct Option:
Revenue recognised £1,000; journal entry - Debit Unearned Revenue £1,000, Credit Revenue £1,000

About This Question

This is Gce Model Questions Vol1 2021 Financial Accounting Question 3. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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