A Business Performs Services for a Customer for $26,000 on Account.Which

question 172

Multiple Choice

A business performs services for a customer for $26,000 on account.Which of the following accounts is credited?

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

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Definitions:

Exercise Price

The price at which the holder of an option can buy (call) or sell (put) the underlying asset or security.

May 40 Put

A put option contract with a strike price of $40, expiring in May, giving the holder the right to sell the underlying asset at this price.

May 40 Call

An options contract that gives the holder the right, but not the obligation, to buy a stock at a price of $40 per share before or on its expiration in May.