The Last Bank Lends Money to a Customer on a Six

question 19

Multiple Choice

The Last Bank lends money to a customer on a six month note. The entry to record the issuance of the note is:

• A)debit Note Receivable and credit Service Revenue.
• B)debit Service Revenue and credit Note Receivable.
• C)debit Note Receivable and credit Cash.
• D)debit Cash and credit Note Receivable.

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Definitions:

Marginal Cost

The added cost incurred from the production of an extra unit of output.

Total Revenue

The total amount of money generated by a business from the sale of goods or services before any expenses are subtracted.

Life Expectancy

The average number of years a person is expected to live based on demographic factors such as current age, gender, and geographic location, calculated from statistical data.

U.S. Business

Business enterprises operating within the United States, covering a wide range of industries and contributing to the economic activity of the country.