Neco Model Questions Vol1 2018 Financial Accounting Question 18

Practice objective / multiple choice question 18 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 18 NECO_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

On 1 January, XYZ Services received \(\text{₦}200,000\) in cash for services that will be performed evenly over the next 12 months. How should this transaction be recorded in the books at the time of receipt?

Answer Options

Correct Answer A. Debit Cash, Credit Unearned Revenue (Liability)
B. Debit Cash, Credit Service Revenue
C. Debit Unearned Revenue, Credit Cash
D. Debit Cash, Credit Revenue (Liability)
Correct Answer
A
Correct Option:
Debit Cash, Credit Unearned Revenue (Liability)

About This Question

This is Neco Model Questions Vol1 2018 Financial Accounting Question 18. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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