The information in the following T-accounts of Gibson Company indicates that:
A)Cash has been paid out to a company that will provide future services to Gibson Company.
B)Cash has been received by Gibson for services that Gibson will provide in the future.
C)Gibson has provided services to a customer and the cash account has been increased.
D)None of these

Question

The information in the following T-accounts of Gibson Company indicates that: 
A)Cash has been paid out to a company that will provide future services to Gibson Company. 
B)Cash has been received by Gibson for services that Gibson will provide in the future. 
C)Gibson has provided services to a customer and the cash account has been increased. 
D)None of these

Quizplus · Accepted Answer

Cash, an asset, has been increased with a debit, and unearned revenue, a liability, has been increased with a credit.

The Information in the Following T-Accounts of Gibson Company Indicates