A Business Collects Cash from a Customer for Services That

question 45

Multiple Choice

A business collects cash from a customer for services that were performed one month earlier.Which of the following accounts is debited?

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

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Definitions:

Critical Items

Goods or components crucial for the manufacturing process or customer satisfaction, often given higher priority in inventory management.

Inventory

The total amount of goods stored by a company that is ready or will be ready for sale.

Service Inventory

Intangible goods in a service operation that cannot be stored or inventoried in the traditional sense, such as available hotel rooms or hours of consulting.