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:

Characterised

Described in terms of distinctive qualities or features.

Direct

In financial and business contexts, this term refers to a method or approach that involves straight interaction without intermediary channels, often used in marketing to describe direct communication or sales to customers.

NCI Allocation

Refers to the distribution of Net Current Assets among various parties or accounts, primarily focusing on how non-controlling interest (NCI) is allocated in consolidated financial statements.

Equity Account

An account that represents the owner's interest in a company's assets, typically reflecting the amount of funds that remain for the owners after all liabilities have been subtracted.