The Entry Made to Close Service Revenue Would Include a Debit

question 38

Multiple Choice

The entry made to close Service Revenue would include a debit to:

• A)Retained Earnings and a credit to Service Revenue.
• B)Service Revenue and a credit to Retained Earnings.
• C)Service Revenue and a credit to Dividends.
• D)Service Revenue and a credit to Net Income.

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Definitions:

Value-added Activities

Process or actions that enhance the worth of a product or service, contributing to higher customer satisfaction or competitive advantage.

Product Development

The complete process of bringing a new product to market, from ideation through design, development, and introduction.

Market Performance

An assessment of a company's effectiveness in selling its products or services, often measured by market share, sales volume, and profitability.

Financial Performance

A measure of how well a company can use assets from its primary mode of business and generate revenues, reflecting the financial health and profitability of the business.