Which of the Following Entries Records the Collection of Cash

question 166

Multiple Choice

Which of the following entries records the collection of cash from cash customers?

• A) Fees Earned, debit; Cash, credit
• B) Fees Earned, debit; Accounts Receivable, credit
• C) Cash, debit; Fees Earned, credit
• D) Accounts Receivable, debit; Fees Earned, credit

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Definitions:

Standard Price

A pre-determined cost assigned to goods and services, used as a benchmark in budgeting and variance analysis.

Pounds

A unit of weight commonly used in the British imperial and United States customary measurement systems.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost of those materials.

Per-unit Standards

Benchmarks or norms for the cost or quantity of materials, labor, and overhead required to produce one unit of product, used for budgeting and performance evaluation.