On August 15,a Customer Paid $5,000 for Services Provided a Month

question 170

Multiple Choice

On August 15,a customer paid $5,000 for services provided a month earlier.The customer was billed on August 1.How does this transaction affect the accounting equation?

• A)Add $5,000 to Cash and add $5,000 to Service Revenue.
• B)Add $5,000 to Cash and add $5,000 to Retained Earnings.
• C)Add $5,000 to Cash and subtract $5,000 from Accounts Receivable.
• D)Add $5,000 to Accounts Payable and add $5,000 to Cash.

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Definitions:

Merchandising Programs

Strategies and practices that companies use to promote the sale of products in retail environments, which can include product placement, pricing strategies, and promotional activities.

Corporate Vertical Marketing System

A tightly integrated supply chain structure where a single company owns or controls each step of the production and distribution process.

21st Century Fox

A former American multinational mass media corporation involved in film and television production, known for its significant influence in the entertainment industry.

Integrated Marketing System

A cohesive marketing strategy that ensures all forms of communications and messages are linked together and support the core brand message.