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:

Scatter Diagram

A graphical representation of data points plotted on a horizontal and vertical axis to show the relationship between two variables.

Negative Linear Relationship

A relationship between two variables where an increase in one variable leads to a decrease in the other, represented by a downward sloping line on a graph.

Dependent Variable

In statistical modeling and experiments, it is the variable assumed to depend on one or more independent variables.

Variables

In research, variables are any characteristics, numbers, or quantities that can be measured or controlled.