Customers Made Payments Totaling $8,000 on Their Accounts

question 122

Multiple Choice

Customers made payments totaling $8,000 on their accounts.Which accounts are affected by this transaction?

• A) Service Revenue and Retained Earnings increase by $8,000.
• B) Cash and Service Revenue increase by $8,000. Liabilities and Customer Expense increase by $8,000.
• C) Cash increases by $8,000 and Accounts Receivable decreases by $8,000. Revenue and Retained Earnings are unchanged.
• D) Cash and liabilities decrease by $8,000.

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Definitions:

Make-To-Order

A production strategy where products are only manufactured after receiving a customer's order, allowing for customization.

Modular Bills

Bills of material organized by major subassemblies or by product options.

Phantom Bills

refer to a bill of materials used in manufacturing for temporary or virtual assemblies that are not physically built but are needed for planning or costing purposes in complex manufacturing projects.

Cost Of Individual Components

The monetary value required to purchase or produce each separate element that makes up a product or service.