Victoria Received $400 from Customers in Partial Payment for Accounting

question 43

Multiple Choice

Victoria received $400 from customers in partial payment for accounting services performed previously.The recording of this transaction would:

• A)increase Cash and Victoria's Capital $400.
• B)increase Cash and decrease Accounts Receivable $400.
• C)increase Cash and increase Accounts Receivable $400.
• D)decrease Accounts Receivable and increase Victoria's Capital $400.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the efficiency with which a company utilizes its resources.

Explicit Costs

are direct, out-of-pocket payments for expenses incurred by a business or individual.

Revenues

The total income generated by a company or organization from its activities, before any expenses are subtracted.

Economic Profit

The difference between the total revenues received by a business and the total opportunity costs of all resources used in the production.