If a Business Has Received Cash in Advance of Services

Multiple Choice

If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be

A) debit Unearned Revenue and credit Cash.
B) debit Unearned Revenue and credit Service Revenue.
C) debit Unearned Revenue and credit Prepaid Expense.
D) debit Unearned Revenue and credit Accounts Receivable.