A Business Renders Services to a Customer for $26,000 on Account

question 14

Multiple Choice

A business renders services to a customer for $26,000 on account. Which of the following accounts will be debited?

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

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Definitions:

Direct Labor

The wages and associated costs for employees who are directly involved in the production of goods or services.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and salaries of indirect labor, not directly tied to the production of goods.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are subtracted.

Performance

The act of carrying out or accomplishing tasks, goals, or objectives, often measured against known standards or objectives.