Which of the Following Is the Appropriate Journal Entry If

question 41

Multiple Choice

Which of the following is the appropriate journal entry if a company performs a service and is paid immediately?

• A)Debit to Cash,debit to Service Revenue.
• B)Debit to Cash,credit to Service Revenue.
• C)Debit to Accounts Receivable,credit to Cash.
• D)Debit to Service Revenue,credit to Accounts Receivable.
• E)Debit to Accounts Receivable,credit to Service Revenue.

Compute inventory turnover and understand its implications on business operations.

Apply the concept of days in inventory to assess inventory management efficiency.

Recognize the requirements and differences in inventory accounting and reporting under GAAP and IFRS.

Analyze the impact of different inventory valuation methods on financial statements and tax implications.

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Definitions:

Centimeter

A unit of length in the metric system, equal to one hundredth of a meter, commonly used to measure small distances or heights.

Inch

A unit of length in the British imperial and United States customary systems, equal to 1/12 foot or 2.54 centimeters.

Metric System

A decimal system of measurement based on meters, liters, and grams as units of length, volume, and weight.

Liter

A metric unit of volume equal to one cubic decimeter or 1000 cubic centimeters, commonly used to measure liquids.