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.

---

Definitions:

Adjusting Journal Entry

An accounting record entered at the closing of a financial period to distribute profits and losses to the correct period.

Five-Day Week

A work schedule that typically consists of five eight-hour days, totaling 40 hours, usually from Monday to Friday.

Biweekly Salaries

Salaries that are paid every two weeks, totaling 26 payments over the course of a year.

Payday

Payday refers to the specific day on which an employer distributes wages or salaries to employees.