HH Consulting & Design Provided $800 of Consulting Work and $100

question 38

Multiple Choice

HH Consulting & Design provided $800 of consulting work and $100 of design work to the same client. It billed the client for the total amount and is expecting to collect from the customer next month. Which of the following general journal entries will HH Consulting & Design make to record this transaction?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 900 & \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline \text { Design Revenue } & & 100 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Consulting Revenue } & 800 & \\
• \hline \text { Design Revenue } & 100 & \\
• \hline \text { Cash } & & 900 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 800 & \\
• \hline \text { Design Revenue } & & 100 \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 900 & \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline \text { Design Revenue } & & 100 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | r | }
• \hline \text { Design Revenue } & 100 & \\
• \hline \text { Consulting Revenue } & 800 & \\
• \hline \text { Accounts Receivable } & & 900 \\
• \hline
• \end{array}\]

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Definitions:

Maximum Interest Rate

The highest rate of interest that can be charged on loans and credit products, often regulated by law to protect consumers from excessively high rates.

Federal Funds Rate

The interest rate that U.S. banks and other depository institutions charge one another on overnight loans made out of their excess reserves.

Economic Profits

The surplus left after a firm has deducted all its costs, including opportunity costs, from its total revenues.

Monopoly Power

The ability of a single supplier in a market to control the price and supply of a product or service, often resulting in higher prices and limited choices for consumers.