A Business Performs Services for $26,000 and Collects Cash from the Customer.Which

question 14

Multiple Choice

A business performs services for $26,000 and collects cash from the customer.Which of the following accounts will be debited?

• A) Cash
• B) Accounts Receivable
• C) Service Revenue
• D) Accounts Payable

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Definitions:

Borrowed

The act of obtaining or receiving funds or goods with the promise or understanding of returning or repaying the lender at a later date, usually with interest.

Interest Rate

The proportion, in a percentage, at which interest is paid by borrowers for the use of money that they borrow from a lender. It is a critical component of the credit markets.

Years

A unit of time equal to 365 days (or 366 days in a leap year), used in calendar timekeeping.

Present Value

The value right now of a sum of money expected in the future or a sequence of cash inflows, factoring in a specific rate of return.