When a Company Delivers a Product or Service for Which

question 86

Multiple Choice

When a company delivers a product or service for which a customer has previously paid,the company records the following:

• A)A debit to a revenue account and a credit to a liability account.
• B)A debit to a revenue account and a credit to an asset account.
• C)A debit to an asset account and a credit to a revenue account.
• D)A debit to a liability account and a credit to a revenue account.

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Definitions:

OBD II

On-Board Diagnostics, second generation; a standardized system that allows electronic access to a vehicle's diagnostic information.

Malfunctions

Failures or dysfunctions in a system, equipment, or part, often causing it to operate incorrectly or not at all.

Emissions

Pollutants released into the air from sources such as vehicles, factories, and power plants, often regulated to protect environmental and public health.

Testing

The process of examining and evaluating something to determine its condition, quality, or efficiency through various methods and techniques.