A Business Renders Services to a Customer for $16 000

question 66

Multiple Choice

A business renders services to a customer for $16 000 on credit.Which account is credited?

• A)Accounts receivable
• B)Cash
• C)Service revenue
• D)Accounts payable

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Definitions:

IFRS

International Financial Reporting Standards, which are accounting rules set by the International Accounting Standards Board (IASB) for the preparation of financial statements globally.

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States.

Notes Payable

Written agreements where a borrower promises to pay back a specified sum to the lender at a future date.

Adjusting Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.