Smith Technical Services Is Working on a Six-Month Job for a Client

question 141

Multiple Choice

Smith Technical Services is working on a six-month job for a client, starting February 1. They will collect $30,000 from their customer when the job is finished. On March 1, their Accounts Receivable account had a debit balance of $5,000. At the end of March, after monthly adjusting entries have been made, what will be the balance in Accounts Receivable?

• A)Debit balance of $5,000
• B)Credit balance of $25,000
• C)Debit balance of $10,000
• D)Debit balance of $30,000

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Definitions:

Cocktail Party Effect

The brain's ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, much like how a partygoer can focus on a single conversation in a noisy room.

Selective Attention

The process by which a person can focus on one input or task while ignoring other stimuli.

Chronic Sleep Deprivation

A long-term condition where an individual consistently does not get enough sleep, leading to significant health and cognitive issues.

Obesity

A medical condition characterized by excessive body fat that presents a risk to health.