Final answer:
The correct accounting journal entry for Cave Man Company's receipt of $3,500 in cash revenue is to debit Cash and credit Income from Services for $3,500. An example of accounting profit calculation shows that after deducting explicit costs from total revenues, the profit is the remaining amount.
Step-by-step explanation:
The question presented concerns the entry of a financial transaction within the realm of accounting. When Cave Man Company received cash revenue of $3,500, the correct journal entry to record this transaction would be:
Journal Entry
This entry reflects an increase in the company's cash asset account and a simultaneous increase in income, representing the revenue earned from providing services.
Now, let's look at a related self-check question as a reference:
Accounting Profit Calculation
A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital, and $200,000 on materials. The firm's accounting profit would be calculated by subtracting these explicit costs from the total revenues:
Accounting Profit = $1,000,000 - ($600,000 + $150,000 + $200,000) = $50,000.