Buckeye Company Received $2,000 from Customers for Services Provided During

question 67

Multiple Choice

Buckeye Company received $2,000 from customers for services provided during the current month. Buckeye will

• A)debit liabilities and credit revenue for $2,000.
• B)debit revenue and credit assets for $2,000.
• C)debit assets and credit revenue for $2,000.
• D)debit liabilities and credit assets for $2,000.

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Definitions:

Capital Goods

Long-lasting goods acquired or manufactured by a business that are used to produce other goods or services.

Interest Rates

The percentage charged on borrowed funds or paid on deposits over time, reflecting the cost of borrowing or the reward for saving.

Loanable Funds

The money available for borrowing and lending in the financial markets, determined by savings and investments.

Interest Rate

The percentage of a borrowed sum that the lender charges as interest to the borrower, usually specified as an annual percentage of the total loan amount.