When a Company Has Performed a Service but Has Not

question 182

Multiple Choice

When a company has performed a service but has not yet received payment, it

• A)debits accounts receivable and credits service revenue.
• B)debits revenue from services and credits accounts receivable.
• C)debits revenue from services and credits accounts payable.
• D)makes no entry until the cash is received.

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Definitions:

Voting Paradox

is a situation in social choice theory where collective preferences can be cyclic (A is preferred to B, B is preferred to C, and C is preferred to A), despite the individual preferences being consistent.

Majority-Rule Voting

A decision-making process where the option that receives more than half of the votes is chosen, commonly used in democratic systems and organizations.

Voting Paradox

A situation in social choice theory where collective preferences can be cyclic (i.e., not transitive), even if the preferences of individual voters are not, leading to a lack of consistent aggregation of individual preferences into a coherent group order.

Impossibility Theorem

A principle, also known as Arrow's impossibility theorem, stating that it is impossible to devise a social welfare function that fairly ranks societal preferences in the presence of three or more options.