Which of the Following Shows How the Event "Collected Cash

question 38

Multiple Choice

Which of the following shows how the event "collected cash for services to be rendered in the future" affects a company's financial statements?

---

Definitions:

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Permanent Account

An account in the general ledger that carries its ending balance over to the next accounting period, such as assets, liabilities, and equity accounts.

Balance Sheet Accounts

Accounts that appear on the balance sheet, representing the company's assets, liabilities, and shareholders' equity at a specific point in time.

Mortgage Payable

A liability account that records the amount owed on a long-term property loan.