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:

Poisonous Substance

A toxic substance capable of causing illness or death if ingested, inhaled, or absorbed through the skin.

Caustic

Substances that can burn, corrode, or destroy organic tissue by chemical action.

Harmful Substance

A material or agent that can cause damage to living organisms or the environment.

Toxic Effect

Poisonous substance causing a health-related reaction.