Which of the Following Is the Appropriate Journal Entry If

question 93

Multiple Choice

Which of the following is the appropriate journal entry if a company performs a service and then bills the customer?

• A)Debit to Cash,Debit to Revenue
• B)Debit to Cash,Credit to Revenue
• C)Debit to Accounts Receivable,Credit to Cash
• D)Debit to Revenue,Credit to Accounts Receivable
• E)Debit to Accounts Receivable,Credit to Revenue

---

Definitions:

Effective Annual Cost

This term refers to the total cost of borrowing on an annual basis, including interest and any fees, taking compounding into account.

Nominal Cost

The original cost of an asset or investment, not adjusted for inflation or other factors affecting its current value.

Trade Credit

An arrangement to buy goods or services on account, that is, without making immediate cash payment, usually evidenced by an invoice.

Nominal Annual Cost

The stated annual cost of borrowing or investing, without adjusting for the compounding of interest or for inflation.