The Following Transactions for the Month of March Have Been $\$ 750 \mathrm { cash }$

question 168

Multiple Choice

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar, 1 The business received $8,000 cash and issued common stock to stockholders.
Mar. 2 Paid the first month's rent of $600.
Mar. 3Purchasod equipment by paying $2,000 cash and executing a note payable for $6,000.
Mar. 4 Purchasod office supplies for $\$ 750 \mathrm { cash }$ .
Mar. 5 Billed a client for $14,000 of design services completed.
Mar. 6 Received $\$ 5,000$ on account for the services previously recorded. What is the balance in Accounts Receivable?

• A) $5,000
• B) $9,000
• C) $6,000
• D) $14,000

---

Definitions:

Activity Rate

A measurement used in activity-based costing to allocate costs to specific activities, typically expressed as a cost per activity unit.

General Overhead

General overhead encompasses all indirect costs involved in running a business that are not directly tied to a specific product or service, such as utility expenses and salaries of administrative staff.

Unit Selling Price

The amount of money charged to the customer for a single unit of a product or service.

Variable Cost Concept

Costs that vary directly with the level of production output, such as raw materials and labor involved in production.