Which of the Following Is the Appropriate Journal Entry If

question 146

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 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

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Definitions:

Ending Equity

The total value of all ownership interests in the company at the end of the accounting period, after all revenues and expenses are accounted for.

Beginning Equity

The value of an owner's interest in a company at the start of an accounting period.

Revenues

The total amount of money generated by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Operating Activity

Transactions related to the primary activities of a business, such as purchasing inventory, selling goods or services, and paying salaries.