Answer: d. have customers who operate in many different parts of the country
Explanation: When checks are to be collected from customers of a business that are spread over a wide geographical area, a lockbox plan is employed in order to speed up the collection of checks. It involves the customers dropping their checks in the lock boxes rather than mailing it to the business thus, the use of lockboxes help reduce mail float.
Answer:
a. Cash basis - Service revenue is $900
b. Accrual basis - Service revenue is $2,100 (which is $1200 + $900)
Explanation:
In accounting, there are 2 basis for recognizing transactions; these are cash basis and accrual basis.
In cash basis, sales and expenses are not recorded unless cash has been collected and paid respectively. In the accrual basis of accounting, expenses and sales are recorded when incurred and earned respectively.
Revenue earned under the accrual basis would therefore include the revenue for which cash has been collected and those for which cash is yet to be collected.
Answer:
falling into debt if faced with a serious problem
Brainliest?
