A Business Invoices a Customer $200 for Maintenance Services Supplied

question 12

Multiple Choice

A business invoices a customer $200 for maintenance services supplied on credit.The effect of this transaction on the accounting equation is:

• A) an increase in the asset accounts receivable $200 and an increase in profit or loss by $200 to record the services income.
• B) an increase in the asset cash $200 and an increase in profit or loss by $200 to record the services income.
• C) an increase in the asset accounts receivable of $200 and a decrease in the asset cash $200 to record the amount paid.
• D) a decrease in the asset accounts receivable $200 and an increase in profit or loss by $200 to record the services income.

---

Definitions:

Performance Evaluation

The formal assessment and review of an individual's or group's job performance, usually by supervisors.

Company Budget

A financial plan for a specific period outlining projected revenue, expenses, and allocations.

On-The-Job Training

Training method that teaches an employee to complete new tasks by performing them under the guidance of an experienced employee.

Apprenticeship Programs

These are formalized training programs that combine on-the-job training with classroom instruction, usually sponsored by employers or labor unions, to prepare individuals for skilled trades.