Victoria Received $1,000 from Customers in Partial Payment for Accounting

question 65

Multiple Choice

Victoria received $1,000 from customers in partial payment for accounting services performed previously. The recording of this transaction would:

• A) increase Cash and Victoria's Capital $1,000.
• B) increase Cash and decrease Accounts Receivable $1,000.
• C) increase Cash and increase Accounts Receivable $1,000.
• D) decrease Accounts Receivable and increase Victoria's Capital $1,000.

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Definitions:

Companywide

Pertaining to or affecting all parts of a business or the entire company.

Possession Utility

The value or usefulness that comes from a consumer being able to possess a product, enabling its use when and where the consumer wishes.

Ownership Utility

The added value or satisfaction a consumer obtains from owning a product and being able to use it as desired.

Form Utility

The value added to products through the process of transformation, creating a more desirable product for consumers.