What Would Be the Account Balance in the Service Revenue

question 94

Multiple Choice

What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance??

• A)$17,400 credit
• B)$14,400 credit
• C)$14,400 debit
• D)$15,900 credit
• E)$15,900 debit

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Definitions:

Good Faith Purchaser

is a person who buys property without notice of any other party's claim to the title of the property and for a fair value.

Consequential Damages

Losses that arise not directly from a breach of contract but as a foreseeable result of the breach.

Monetary Damages

Compensation awarded in the form of money to a person who has suffered loss or injury as a result of the wrongful act of another.

Liquidated Damage Clause

A provision in a contract specifying a predetermined amount of damages to be paid if one party breaches the agreement.