Which of the Following Journal Entries Would Be Recorded If $$\begin{array} { | l | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Service revenue } & & 1,000 \\\hline\end{array}$$

question 55

Multiple Choice

Which of the following journal entries would be recorded if a business collects $1,000 cash on account from a customer for services performed at an earlier date?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Service revenue } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts receivable } & 1,000 & \\
• \hline \text { Service revenue } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Accounts receivable } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Service revenue } & 1,000 & \\
• \hline \text { Accounts receivable } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

Historical Record

Documentation or an account of past events, actions, or operations, serving as evidence or information about previous occurrences.

Financial Markets

Platforms where buyers and sellers trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.

Real Rate Of Return

The annual percentage of profit or loss on an investment adjusted for inflation.

T-Bill Rate

The interest rate paid by U.S. Treasury bills, considered a benchmark for the risk-free interest rate.