Which of the Following Journal Entries Would Be Recorded If $$\begin{array} { | l | r | r | } \hline \text { Service revenue } & 400 & \\\hline \text { Accounts payable } & & 400 \\\hline\end{array}$$

question 62

Multiple Choice

Which of the following journal entries would be recorded if a business renders services and receives cash of $400 from the customer?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Service revenue } & 400 & \\
• \hline \text { Accounts payable } & & 400 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Service revenue } & 400 & \\
• \hline \text { Accounts receivable } & & 400 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Service revenue } & 400 & \\
• \hline \text { Cash } & & 400 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 400 & \\
• \hline \text { Service revenue } & & 400 \\
• \hline
• \end{array}\]

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Definitions:

Increase Assets

Enhancing the value of a company's resources or acquiring new physical, financial, or intangible properties that can provide economic benefits.

Decrease Assets

The reduction in the value or amount of the resources owned by a company, which can result from sales, disposal, or depreciation.

Accounting Equation

The fundamental equation underpinning the double-entry bookkeeping system: Assets = Liabilities + Equity.

Liabilities

The financial liabilities a firm has towards other parties, necessitating reimbursement through the provision of economic gains over a specified duration.