A Business Renders Services to a Customer for $26,000 on Account

question 14

Multiple Choice

A business renders services to a customer for $26,000 on account. Which of the following accounts will be debited?

• A)Cash
• B)Accounts Receivable
• C)Service Revenue
• D)Bank

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Definitions:

Lack of Variety

A situation in a market where there are few different options or types of products available to consumers, potentially leading to decreased consumer satisfaction.

Close Substitute

A product or service that can easily replace another in consumption or use, due to similarities in characteristics or functionalities.

Monopolistic Competitors

Companies that are in a competitive market structure but with differentiated products, allowing them small amounts of market power to set prices.

Industry Supply Curve

A graphical representation showing how much product a market can offer at various prices, for a specific industry.