A Business Collects Cash from a Customer on Settlement of Accounts

question 125

Multiple Choice

A business collects cash from a customer on settlement of accounts receivable. Which of the following accounts will be credited?

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

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Definitions:

Common Stock

The basic voting stock issued by a corporation.

Cultural Eutrophication

The process by which lakes, rivers, or coastal waters become over-enriched with nutrients from human activities, leading to excessive growth of algae and environmental degradation.

Pollution Control

Measures and strategies implemented to reduce or eliminate the release of pollutants into the environment, aiming to protect human health and ecosystems.

Algal Blooms

Rapid increase in the population of algae in aquatic systems, often causing environmental problems.