On May 1,a Business Provided Legal Services to a Client

question 189

Multiple Choice

On May 1,a business provided legal services to a client and billed the client $4,000.The client promised to pay the business in one month.Which journal entry should the business record on May 1?

• A)Debit Cash for $4,000 and credit Service Revenue for $4,000.
• B)Debit Cash for $4,000 and credit Retained Earnings for $4,000.
• C)Debit Accounts Receivable for $4,000 and credit Service Revenue for $4,000.
• D)Debit Accounts Payable for $4,000 and credit Service Revenue for $4,000.

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Definitions:

Coefficient Of Determination

A statistical measurement that assesses the proportion of variance in the dependent variable that is predictable from the independent variable(s), often denoted as R^2.

SSR

Sum of Squares due to Regression, a measure in statistics that quantifies the explanation of variance by the linear regression model.

SSE

Sum of Squared Errors, a measure used in statistics to describe the total deviation of observed values from the values expected under a model.

Standard Error

The standard deviation of the sampling distribution of a statistic, most often the mean.