Ignoring GST, Which of the Following Entries Correctly Records the Receipt

question 1

Multiple Choice

Ignoring GST, which of the following entries correctly records the receipt by Swift Garden Maintenance of $500 in cash for gardening services?

• A) DR Bank $500; CR Services $500
• B) DR Services $500; CR Bank $500
• C) DR Bank $500; CR Debtors $500
• D) DR Equity $500; CR Services $500

---

Definitions:

Tax Burden

The measure of the total amount of taxes paid by individuals or businesses, often expressed as a percentage of income or GDP.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.

Excise Tax

A tax charged on specific goods and services, such as tobacco, alcohol, and gasoline, usually intended to discourage their use or generate revenue.

Revenue Generated

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.