Two Weeks Earlier, a Business Had Rendered Services to One $$\begin{array} { | c | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Accounts Receivable } & & 1,000 \\\hline\end{array}$$

question 53

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?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Accounts Receivable } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Salary Expense } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Service Revenue } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Supplies } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

Profit-Maximizing Quantity

The production level where a company reaches its maximum profitability.

Consensus

is a group decision-making process where discussions continue until all members agree on a particular solution or decision, highlighting collaboration and collective agreement.

Team Skill

The collective abilities and competencies of a group that contribute to its effectiveness in achieving common goals.

Broad-based Organizational Change

A comprehensive transformation in an organization covering major aspects like culture, systems, processes, and structure, aiming at improving overall performance and adaptability.