Receiving Cash on Account of $1,200 from a Customer Would

question 109

Multiple Choice

Receiving cash on account of $1,200 from a customer would include a:

• A)debit to accounts receivable and a credit to service revenue for $1,200.
• B)debit to cash and a credit to accounts receivable for $800.
• C)debit to accounts payable and a credit to cash for $1,200.
• D)debit to cash and a credit to accounts receivable for $1,200.

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Definitions:

Economic Values

The importance or worth of goods, services, or resources in terms of their ability to fulfill needs and wants.

Annual Rate

The interest rate for a loan or investment expressed over a one-year period.

Annual Rate

The interest rate for a period of one year, often used as a standard measure for comparing the returns on investments.

Payment Today

A term typically used in finance that refers to an immediate transaction or payment that has to be made or is made at the current date.