A Sale on Account Is Recorded as a Debit to Service

question 20

True/False

A sale on account is recorded as a debit to Service Revenue and a credit to Accounts Receivable.

---

Definitions:

Liabilities

Economic dues a company is obligated to clear with others, which involves dispensing economic benefits progressively over time.

Stockholder's Equity

Ownership interest represented by what remains of a company's assets once all liabilities have been deducted.

Assets

Resources owned by a business that have economic value and can be used to meet debts or generate income.

Fiscal Year

A twelve-month period used for calculating annual financial statements in businesses and other organizations, which may or may not align with the calendar year.