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

question 79

Multiple Choice

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

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

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Definitions:

Antitrust Laws

Legislation enacted to prevent new monopolies from forming and police those that already exist to protect consumers from predatory business practices.

Fair Return Price

A pricing concept where the price of a good or service is set to allow the provider to cover costs and earn a reasonable profit, often associated with regulated industries.

Socially Optimal Price

The pricing point where the societal benefits of consuming a good or service equal the societal costs of providing it, leading to an efficient allocation of resources.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unattainable.