A Business Collects Cash from a Customer in Payment of Accounts

question 126

Multiple Choice

A business collects cash from a customer in payment of accounts receivable.Which account is credited?

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

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Definitions:

Inflation

An economic condition marked by a sustained increase in the general price level of goods and services in an economy over a period of time.

Government Purchases

Expenditures by government entities for goods and services that directly satisfy public consumption or are invested in public infrastructure.

GDP

Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country's borders in a specific time period, serving as a broad indicator of its economic performance.

Net Exports

The value of a country's total exports minus its total imports.