BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gain
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Debt
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Equity
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Revenue
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Detailed explanation-1: -Journal Entries for Service Revenue When a customer pays for their services in cash right away, there is a debit to Cash and a credit to Service Revenue. The journal entry for services rendered on account includes a debit to the asset Accounts Receivable and a credit to Service Revenue.
Detailed explanation-2: -The statement of retained earnings tells a business owner and others how much cumulative profit the company has available to reinvest in the business.
Detailed explanation-3: -To account for this unearned rent, the landlord records a debit to the cash account and an offsetting credit to the unearned rent account (which is a liability account).
Detailed explanation-4: -An income statement shows a company’s revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement.