During September Its First Month of Operations Sailor Tutoring Service

question 131

Multiple Choice

During September its first month of operations Sailor Tutoring Service Inc.performed SAT prep tutoring services and billed customers $1200.The company collected 75% of the amount owed.The combined effect of these two transactions on Sailor's tabular analysis is:

• A)Increase Cash by $900 increase Accounts Receivable $300 and increase Revenue by $1200.
• B)Increase Cash by $900 and increase Revenue by $900.
• C)Decrease Accounts Payable by $300 increase Revenue by $900 and increase Cash by $1200.
• D)Increase Accounts Accounts Receivable $1200 and increase Revenue $1200.

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Definitions:

Total Revenues

The sum of all income generated by a company through its business activities, typically from the sale of goods and services before any costs or expenses are deducted.

Price-Inelastic

Describes a situation where the demand for a good or service is relatively unresponsive to changes in its price.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers over a given period.

Price-Elasticity Coefficients

Numerical values that measure the responsiveness of quantity demanded or supplied to a change in price; they help in assessing how price changes impact demand or supply levels.