Monaco & Associates
Use the Following Five Transactions for Monaco $\quad$

question 15

Multiple Choice

Monaco & Associates
Use the following five transactions for Monaco & Associates to answer the following question.
Oct. 1 $\quad$ Bills are sent to clients for services provided in September in the amount of $\$ 800$ .

9 $\quad$ Dravo Co. delivers office furniture $( \$ 1,060 )$ and office supplies $( \$ 160 )$ to Monaco leaving an invoice for $\$ 1,220$ .

15 $\quad$ Payment is made to Dravo Co. for the furniture and office supplies delivered on October 9 .

23 $\quad$ A bill for $\$ 430$ for electricity for the month of September is received and will be paid on its due date in November.

31 $\quad$ Salaries of $\$ 850$ are paid to employees.
-See the transactions for Monaco & Associates. ?
The journal entry to record the October 1 transaction will include a debit of $800 to

• A)Sales Revenue.
• B)Accounts Receivable.
• C)Cash.
• D)Retained Earnings.

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Definitions:

Reportable

Refers to information or events significant enough to be mentioned or included in financial statements or reports.

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

Testing

The process of evaluating a system or its component(s) to determine whether it meets specified requirements.

Economic Environment

The Economic Environment consists of all external economic factors, such as inflation, unemployment, and economic policies, that influence a business's operating conditions and financial performance.