On May 1,a Company Provided Legal Services for a New

question 167

Multiple Choice

On May 1,a company provided legal services for a new client.The lawyer asked for $1,000 and the client paid with a check on May 1 before leaving the office.In transaction analysis,how does this transaction affect the accounting equation?

• A)Add $1,000 to Cash and add $1,000 to Service Revenue account.
• B)Add $1,000 to Cash account and add $1,000 to Retained Earnings account.
• C)Add $1,000 to Cash account and subtract $1,000 from Accounts Receivable account.
• D)Add $1,000 to Cash account and subtract $1,000 from Accounts Payable account.

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Definitions:

Identifying Mark

A unique feature or sign that distinguishes a person, animal, or object from others.

Indexing

The process of organizing data, literature, or other information to facilitate easy retrieval or search.

Filing Process

An organized method of storing documents or electronic records.

Inspecting

The process of carefully examining or scrutinizing something or someone to ensure compliance with standards or to identify defects.