A Business Renders Services to a Customer for $16 000

question 56

Multiple Choice

A business renders services to a customer for $16 000 on credit. Which account is debited?

• A)Service revenue
• B)Accounts payable
• C)Cash
• D)Accounts receivable

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Definitions:

Depreciated Value

The reduced worth of an asset over time due to wear and tear or obsolescence.

Increasing Annuity

A type of annuity payment that grows at a certain rate or percentage over time.

Compounded Monthly

A specific type of compounding where interest is calculated and added to the principal balance monthly.

Principal

The original amount of money borrowed or invested, before interest or profits.