Recording Service Revenue on Account as a Cash Transaction Will

question 161

Multiple Choice

Recording service revenue on account as a cash transaction will cause:

• A)accounts receivable to be overstated.
• B)owner's equity to be understated.
• C)cash to be overstated.
• D)service revenue to be understated.

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Definitions:

Back-end Database

The part of a database system that stores the actual data and is accessed by the front-end applications, not directly by users.

Database Tables

Structured sets of data stored in a database, organized in rows and columns.

Queries

A request for data or information from a database.

Front-end Database

The part of a database system that interacts directly with the user, providing an interface to enter, query, and display data.