A Business Earns $4,000 from Various Charge Account Clients

question 25

Multiple Choice

A business earns $4,000 from various charge account clients.To record this transaction,the business would:

• A) Debit Accounts Receivable;Credit Cash
• B) Debit Accounts Receivable;Credit Revenue
• C) Debit Cash;Credit Accounts Receivable
• D) Debit Accounts Payable;Credit Revenue

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Definitions:

Euros

The eurozone's official currency, used by 19 out of 27 member states in the European Union.

Foreign Exchange

The trading of currencies from different countries, determining the exchange rates based on supply and demand.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase.

Domestic Market

The marketplace within a country's borders where goods and services are bought and sold, as opposed to international or export markets.