When a Company Performs a Service but Has Not Yet

question 195

Multiple Choice

When a company performs a service but has not yet received payment, it

• A)debits Service Revenue and credits Accounts Receivable.
• B)debits Accounts Receivable and credits Service Revenue.
• C)debits Service Revenue and credits Accounts Payable.
• D)makes no entry until cash is received.

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Definitions:

Extroverts

Individuals characterized by their outgoing, sociable, and energized by interactions with other people personality traits.

Virtue

A characteristic or attribute considered to possess moral goodness, and therefore, is appreciated as a cornerstone of a virtuous character.

Erikson

A psychologist best known for his theory on the psychosocial development of human beings, emphasizing eight stages from infancy to adulthood.

Integrity

The quality of being honest and having strong moral principles; moral uprightness.