A business collects cash from a customer for services that were performed one month earlier.Which of the following accounts is debited?
A) Cash
B) Accounts Receivable
C) Service Revenue
D) Accounts Payable

Question

Quizplus · Accepted Answer

Cash is debited because the business is receiving cash, which is an asset. Accounts Receivable would only be debited if the business was receiving payment on credit. Service Revenue would be credited because it is revenue earned by providing services. Accounts Payable would only be debited if the business was paying a vendor or supplier for goods or services received on credit.

A Business Collects Cash from a Customer for Services That