Which of the Following Is the Appropriate Journal Entry If

question 93

Multiple Choice

Which of the following is the appropriate journal entry if a company performs a service and then bills the customer?

• 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:

Common Resource

A type of good that provides benefits to many individuals, but which has the potential to be depleted or overused because it is not excludable.

Inefficient Allocation

A situation where resources are not distributed or utilized in a way that maximizes potential output or welfare.

Decision Makers

Individuals or groups responsible for making choices that determine the course of actions to be followed by an organization or system.

Public Good

A public good is a good that is both non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use and use by one does not reduce availability to others.