A Day Spa Accepted a Check from a Customer as Payment

question 197

Multiple Choice

A Day Spa accepted a check from a customer as payment for services. Unfortunately, the customer's check bounced. The journal entry required on the company's books as a result of this bank reconciliation item will

• A)decrease total assets.
• B)decrease stockholders' equity.
• C)Both a and
• D)have no net impact on total assets.

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Definitions:

Costume

A costume is a set of clothes worn to portray a particular character or identity, often used in performances, festivals, or themed events.

Formal Operations

In Piaget’s terms, mental operations in which all possible combinations are considered in solving a problem. Consequently, each partial link is grouped in relationship to the whole; in other words, reasoning moves continually as a function of a structured whole.

Appearance/Reality Distinctions

The cognitive ability to differentiate between how things appear and how they actually are.

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Refers to children at the age of three, a development stage characterized by rapid growth in language, social interaction, and cognitive skills.