An Accountant Sent an Invoice to a Customer,Matt Bridges,for $300

question 20

Multiple Choice

An accountant sent an invoice to a customer,Matt Bridges,for $300 for preparing his business activity statement.The debit and credit entries are:

• A) debit cash $300; credit fees income $300.
• B) debit cash $500; credit debtor M. Bridges $300.
• C) debit debtor M. Bridges $300; credit fees income $300.
• D) debit fees income $300; credit fees payable $300.

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Definitions:

Availability Heuristic

A mental heuristic that uses the most readily accessible examples in someone's memory to appraise a specific area, concept, technique, or decision-making process.

Behavioral Economists

Scholars who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Payroll Deduction

A method where an employer withholds a portion of an employee's salary for taxes, insurance premiums, or contributions to retirement plans, directly reducing the employee's take-home pay.

Retirement Fund

A financial arrangement or savings plan intended to support individuals financially after they retire from active work.