Which of the Following Is the Appropriate Journal Entry If

question 41

Multiple Choice

Which of the following is the appropriate journal entry if a company performs a service and is paid immediately?

• A)Debit to Cash,debit to Service Revenue.
• B)Debit to Cash,credit to Service Revenue.
• C)Debit to Accounts Receivable,credit to Cash.
• D)Debit to Service Revenue,credit to Accounts Receivable.
• E)Debit to Accounts Receivable,credit to Service Revenue.

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Definitions:

4-Year Bond

A debt security that matures in four years from the issuance date.

Forward Rate

An interest rate agreed today for a loan to be made or a bond to be purchased at a future date.

Zero-Coupon Bond

A type of bond that does not pay interest during its life but is sold at a discount from its face value and pays its full face value at maturity.

Purchase Price

The amount of money paid to acquire a good or service.