When a Service Has Been Performed but No Cash Has

question 16

Multiple Choice

When a service has been performed but no cash has been received, which of the following statements is true?

• A)No journal entry is made.
• B)The entry includes a debit to accounts payable.
• C)The entry includes a credit to unearned revenue.
• D)The entry includes a debit to accounts receivable.

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Definitions:

Perfectly Price Discriminate

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the buyer is willing to pay.

Output

Output refers to the total amount of goods and services produced by a company, industry, or economy within a given period.

Profit-Maximizing Price

The optimal selling price for a product or service that allows a company to achieve the highest possible profit.

Single Firm

A business or company that operates independently, not part of a larger conglomerate or group.