Even in a perpetual inventory system that updates the inventory account as and when transactions occur, the business must count its inventory at least once in a year

In November, cash is received in advance of rendering services. Assuming that the services have been performed by December 31, the adjusting entry would be

a. Unearned Service Revenue – Debit; Cash – Credit b. Cash – Debit; Service Revenue – Credit c. Unearned Service Revenue – Debit; Service Revenue – Credit d. Service Revenue – Debit; Prepaid Services – Credit

Job order cost cards for incomplete jobs make up the ending balance of the Finished Goods Inventory account

Indicate whether the statement is true or false