Accounting?

Question

Under the accrual basis of accounting, the receipt of cash from a customer in advance of performing the service would be credited to a(n):
Question 29 answers
accrued revenue account
prepaid asset account
deferred revenue account
deferred asset account


A business pays weekly salaries on Friday of $25,000 for a five-day week ending on Friday. Assuming the fiscal period ends on a Thursday, the adjusting entry for accrued salaries would involve a:
Question 36 answers
debit to salary payable for $5,000
debit to salary expense for $20,000
credit to salary payable for $5,000
credit to salary expense for $25,000

Answer 1

Qn 1

If you've received cash for services you've yet to perform, your entries are:
Dr Cash
Cr Deferred revenue a/c (the answer)

When you finally have performed the svcs, you'd
Dr Deferred revenue a/c
Cr Revenue a/c

Don't be confused with accrued revenue a/c. This is an asset (debit) and occurs when you've substantially provided the service but have yet to bill the customer. Your entries are:
Dr Accrued revenue a/c
Cr Revenue
You don't debit a/cs receivable as you've not raised the invoice.

Q2

Assume the salaries are incurred at $5k per day. If the fiscal period ends on a Thursday, you'd need to accrue for Monday to Thurs. You don't accrue for Friday cos the workers have not worked yet and the expense is not incurred yet. So four days' work will be 4 x $5k = $20k. Your entries are:
Dr Salary expense $20,000 (the answer)
Cr Salary payable $20,000

Answer 2

deferred revenue account, the second answer was already given on a previous question

I hope you're trying to learn the content and not just copying it, yahoo answers won't help you on the test!