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Rebecca pays $500 on January 15 for future hair appointments. What is the accounting treatment for this payment?

a. Asset
b. Liability
c. Expense
d. Revenue

1 Answer

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Final answer:

The accounting treatment for Rebecca's payment for future hair appointments on January 15 is a Liability, which represents an obligation until the services are provided. So, the correct answer is: b. Liability

Step-by-step explanation:

The accounting treatment for Rebecca's payment of $500 for future hair appointments on January 15 would be classified as a Liability.

This is because the payment represents an obligation that Rebecca has to provide services in the future. Until the services are actually provided, the payment is considered a liability on the balance sheet.

Once the hair appointments are completed, the liability would be reduced and an Expense would be recognized as the cost of providing the services.

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