On October 3, Josh Antonio, a Carpenter, Received a Cash

question 107

Multiple Choice

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client. Josh paid his telephone bill, and he also bought supplies on credit. For the three transactions, at least one of the entries will include a

• A) credit to Retained Earnings.
• B) credit to Notes Payable.
• C) debit to Accounts Receivable.
• D) credit to Accounts Payable.

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Definitions:

Essential Resource

A fundamental input or commodity that is considered vital for the production of goods and services and the functioning of an economy or ecosystem.

Economies

Broad systems involving the production, distribution, and consumption of goods and services within a society.

Marginal Revenue

The increased earnings a business obtains from the sale of one extra unit of goods or services.

Maximizing Profits

The process by which a firm adjusts its production to achieve the highest possible profit.