Performing a Service for $500 Cash and $700 on Account

question 88

Multiple Choice

Performing a service for $500 cash and $700 on account would include a:

• A)debit to cash for $1,200.
• B)debit to service revenue for $1,200.
• C)credit to service revenue for $500.
• D)debit to accounts receivable for $700.

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Definitions:

Loanable Funds

A term referring to all the money available for borrowing in the financial markets, from various sources including savings and investments.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, typically over a one-year period.

Investment

The act of spending money with the expectation of obtaining an additional income or profit, often involving financial investments, purchasing assets, or funding new business ventures.

Saving Incentives

Financial or regulatory measures designed to encourage individuals or businesses to save more money.