What Would Be the Effect on the Accounts If the Business

question 19

Multiple Choice

What would be the effect on the accounts if the business provided services to a customer collecting cash?

• A)An asset would be debited and an expense debited.
• B)Capital would be credited and Revenue credited.
• C)An asset would be debited and Revenue credited.
• D)An asset would be debited and Capital credited.

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Definitions:

Machinery

A category of physical equipment used in the production or manufacturing process.

Indirect Expenses

Costs not directly linked to the production of goods or services, such as office supplies and utility costs.

Benefits Received

A principle that taxes or charges should be levied according to the benefits a taxpayer receives from public expenditures or services.

Department

A distinct area, division, or branch of an organization focused on a specific set of tasks or functions.