A Company Provided $12,000 of Consulting Services on Account B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 12,000 & \\\hline \text { Consulting services revenus } & & 12,000 \\\hline\end{array}$$

question 26

Multiple Choice

A company provided $12,000 of consulting services on account. The customer promises payment in 30 days. Identify the journal entry below that properly records this transaction.

• A) \[\begin{array} { | l | r | l | }
• \hline \text { Accounts payable } & 12,000 & \\
• \hline \text { Consulting services revenue } & & 12,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 12,000 & \\
• \hline \text { Consulting services revenus } & & 12,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 12,000 & \\
• \hline \text { Cash } & & 12,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | l | }
• \hline \text { Accounts Receivable } & 12,000 & \\
• \hline \text { Consulting services revenue } & & 12,000 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | l | }
• \hline \text { Consulting services revenue } & 12,000 & \\
• \hline \text { Cash } & & 12,000 \\
• \hline
• \end{array}\]

---

Definitions:

Optimal Shipping

The process of determining the most cost-effective and efficient method of distributing products from one point to another.

Unfavorable Exchange Rates

Exchange rates that result in a decrease in the home currency value compared to a foreign currency, potentially leading to higher costs for importing goods and services.

Location Decision

The process of choosing a geographical location for a company's operations, considering factors like market access, costs, and legal regulations.

Savings

A reduction in expenditure or cost, often set aside for future use.