A Company Performs Services for a Client on Account

question 43

Multiple Choice

A company performs services for a client on account. When the company receives the cash from the customer one month later:

• A) a revenue account is increased.
• B) a liability account is decreased.
• C) an asset account is increased.
• D) an expense account is decreased.

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Definitions:

Halo Effect

a type of cognitive bias where the perception of one positive quality in a person or thing influences the overall perception of that entity as positive.

Perceptual Distortion

Occurs when an individual's personal biases, prejudices, or expectations alter the way they perceive reality.

Impression Management

The practice of consciously controlling or manipulating the perception others have of an individual or organization.

Impression Management

The process by which individuals attempt to control the impressions others form of them, especially in social or organizational settings.