A Journal Entry That Debits Cash and Credits Accounts Receivable

question 165

Multiple Choice

A journal entry that debits Cash and credits Accounts Receivable indicates that:

• A)payment was received on account.
• B)payment was made on account.
• C)revenue increased.
• D)revenue decreased.

---

Definitions:

Amortized

Amortization is the process of spreading out a loan into a series of fixed payments over time, covering both principal and interest.

Residual Value

The estimated value of an asset at the end of its useful life.

Lease Terms

The conditions under which a lease will be granted, including duration, payment intervals, fees, restrictions, and penalties.

Lease Obligations

Financial commitments a company incurs as a result of entering into a lease agreement for property, plant, or equipment.