The Following Transactions Have Been Journalized and Posted to the Proper

question 20

Multiple Choice

The following transactions have been journalized and posted to the proper accounts.March is the first month of business operations.

What is the ending balance in the Service Revenue account?

• A)$16,000
• B)$10,000
• C)$14,000
• D)$6,000

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Definitions:

External Reporting

The process of preparing and presenting financial and other information to parties outside the organization.

Traditional Format

In accounting, it refers to the conventional way of reporting income statements, segmenting costs into categories like cost of goods sold, operating expenses.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including raw materials, labor, and manufacturing overhead.

Variable Expenses

Costs that vary directly with the level of production or sales volume, such as raw materials and commission fees.