Which of the following entries would be made as the result of the revenue recognition principle?
A) $$\begin{array} { | c | r | r | }
\hline \text { Service Revenue } & 1,000 & \
\hline \text { Service Revenue } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | c | r | r | }
\hline \text { Accounts Receivable } & 1,000 & \
\hline \text { Service Revenue } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | c | r | r | }
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Accounts Payable } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | }
\hline \text { Depreciation Expense } & 1,000 & \
\hline \text { Accumulated Depreciation } & & 1,000 \
\hline
\end{array}$$

Question

Which of the following entries would be made as the result of the revenue recognition principle?
A) $$\begin{array} { | c | r | r | } 
\hline \text { Service Revenue } & 1,000 & \
\hline \text { Service Revenue } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Receivable } & 1,000 & \
\hline \text { Service Revenue } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | c | r | r | } 
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Accounts Payable } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | } 
\hline \text { Depreciation Expense } & 1,000 & \
\hline \text { Accumulated Depreciation } & & 1,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The revenue recognition principle states that revenue should be recognized when it is earned, regardless of when payment is actually received. In this case, the entry for the service revenue shows that $1,000 worth of services have been earned, so it is the correct entry to make. The other options involve expenses or non-revenue transactions, so they are not applicable to the revenue recognition principle.

Which of the Following Entries Would Be Made as the Result