A Company Provided $12,000 of Consulting Services, and Was Immediately

question 72

Multiple Choice

A company provided $12,000 of consulting services, and was immediately paid in cash by the customer.Identify the journal entry below that properly records this transaction.

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

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Definitions:

Autonomy

The ability or capacity of a person to act independently and make decisions without external influence.

Shame and Doubt

A stage in Erik Erikson's theory of psychosocial development, occurring in early childhood, where kids learn to develop autonomy and self-confidence or experience shame and doubt about their abilities.

Identity Confusion

A state in which an individual is uncertain or conflicted about personal identity issues, such as one's role in society or one's values and beliefs.

Psychosocial Stages

A theory proposed by Erik Erikson that describes eight stages through which a healthily developing human should pass from infancy to late adulthood, each marked by a psychological crisis.