HH Consulting & Design Provided $800 of Consulting Work and $100

question 140

Multiple Choice

HH Consulting & Design provided $800 of consulting work and $100 of design work to the same client. It billed the client for the total amount and is expecting to collect from the customer next month. Which of the following general journal entries will HH Consulting & Design make to record this transaction?

• A) \(\begin{array} { | l | r | r | }
• \hline \text { Design Revenue } & 100 & \\
• \hline \text { Consultirng Revenue } & 800 & \\
• \hline \text { Accounts Receivable } & & 900 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 800 & \\
• \hline \text { Design Revenue } & & 100 \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 900 & \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline \text { Design Revenue } & & 100 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 900 & \\
• \hline \text { Consultnig Revenue } & & 800 \\
• \hline \text { Design Revenue } & & 100 \\
• \hline
• \end{array}\)
• E) \(\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 900 & \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline \text { Design Revenue } & & 100 \\
• \hline
• \end{array}\)

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Definitions:

Airplane Tickets

Documents or electronic vouchers that permit a person to travel on an airplane from one place to another.

Revenue-Maximizing Price

The price level at which a company can sell its product to generate the maximum possible revenue, considering factors like demand elasticity.

Demand Function

A mathematical representation that describes the relationship between the quantity demanded of a good and its price, alongside possible other variables like income or prices of related goods.

Quasilinear Utility

A utility function where one good (usually money) enters linearly and therefore preferences for other goods are independent of the amount of money.