Which of the following entries would be made as the result of the revenue principle?
A) $$\begin{array} { | l | r | r | }
\hline \text { Service revenue } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | }
\hline \text { Accounts receivable } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | }
\hline \text { Salary expense } & 1,000 & \
\hline \text { Accounts payable } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | }
\hline \text { Depreciation expense } & 1,000 & \
\hline \text { Accumulated depreciation } & & 1,000 \
\hline
\end{array}$$

Question

Which of the following entries would be made as the result of the revenue principle?
A) $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | } 
\hline \text { Accounts receivable } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | } 
\hline \text { Salary expense } & 1,000 & \
\hline \text { Accounts payable } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | } 
\hline \text { Depreciation expense } & 1,000 & \
\hline \text { Accumulated depreciation } & & 1,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The revenue principle requires that revenue be recorded when earned, regardless of when the cash is received. Option B correctly reflects the recognition of service revenue earned on account, increasing both Accounts Receivable and Service Revenue.

Which of the Following Entries Would Be Made as the Result