Modern Artists' Services Signed a Contract with a Maintenance Service

question 188

Multiple Choice

Modern Artists' Services signed a contract with a maintenance service company to maintain a building that Modern Artists' will use as an office.The contract states that the work will begin on February 1 and end on May 31.Modern Artists' will pay the maintenance service company $8,000 at the end of May.It accrues Maintenance Expense at the end of every month.What is the balance in the Accounts Payable account for amounts owed to the maintenance service company at the end of March?

• A) Debit balance of $8,000
• B) Credit balance of $4,000
• C) Debit balance of $4,000
• D) Credit balance of $8,000

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Definitions:

Clerical Expenses

Costs associated with administrative tasks and office support services.

Formative Evaluations

Assessments conducted during the development of a project, program, or curriculum to provide feedback and guide improvements.

Summative Evaluations

Assessments conducted at the end of a period of learning to measure the extent of learner's achievement or success.

RFP

Request for Proposal, a document issued by a company or organization to solicit proposals from potential suppliers or service providers.