When Blendtek Co

question 126

Multiple Choice

When Blendtek Co.performs $980 of services on account for a customer,Blendtek will record a journal entry with a debit to:

• A)Cash and a credit to Accounts Receivable.
• B)Accounts Receivable and a credit to Service Revenue.
• C)Service Revenue and a credit to Deferred Revenue.
• D)Cash and a credit to Accounts Payable.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for adjustments in production to meet changes in the market or economy.

Price-taker Market

A market condition where individual buyers or sellers have no power to influence the price of the good or service, typically in a perfectly competitive market.

Average Total Cost

The total cost of production divided by the quantity produced, encompassing both fixed and variable costs.

Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good.