What Would Be the Effect on Accounts If the Business

question 40

Multiple Choice

What would be the effect on accounts if the business provided services to a customer collecting cash?

• A) An asset would be debited and an expense credited.
• B) Capital would be debited and revenue credited.
• C) An asset would be debited and revenue credited.
• D) An asset would be debited and Capital credited.

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Definitions:

Slope

The measure of the steepness or incline of a line on a graph, typically defined as the ratio of the rise over the run between two points.

Vertical Change

The alteration in the y-value or vertical position in a graph, often used in economic models to describe changes in price or quantity.

Seasonally Adjusted

A statistical technique that removes the influences of predictable seasonal patterns to show non-seasonal trends.

Unemployment Rate

The portion of people in the labor market who are without jobs and are searching for employment.