Two Weeks Earlier, a Business Had Rendered Services to One

question 100

Multiple Choice

Two weeks earlier, a business had rendered services to one of its customers on account for which the payment was received today. Which of the following entries would be recorded if the company uses accrual basis accounting?

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Definitions:

New Deal

A series of programs and policies implemented by President Franklin D. Roosevelt in the 1930s to counter the effects of the Great Depression.

Labor

Human effort, either physically or mentally, expended in the production of goods and services.

Rural Electrification Administration

A U.S. federal government agency created in 1935 to bring electricity to rural areas that were not served by existing utility companies, greatly improving quality of life.