A Company Performs Services for a Client on Account

question 115

Multiple Choice

A company performs services for a client on account.When the company receives the cash from the customer one month later:

• A)a revenue account is increased.
• B)a liability account is decreased.
• C)there is no change in total assets.
• D)an expense account is decreased.

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Definitions:

Creditors' Meeting

A gathering organized during the bankruptcy process where creditors can question the debtor about their finances and the proposed plans for reorganizing or settling debts.

Bankruptcy

A legal status for individuals or entities that cannot repay the debts they owe, allowing them to seek relief through court intervention.

Dischargeable Debts

Debts that can be eliminated through bankruptcy, relieving the debtor from any further obligation for these debts.

Chapter 13

A chapter of the U.S. Bankruptcy Code allowing individuals with regular income to develop a plan to repay all or part of their debts.