Question

E5-3 On March 12, Medical Waste Services provides services on account.

a) Create an invoice
b) Make a payment
c) Receive cash
d) No transaction occurs

Answer 1

The correct answer is 'No transaction occurs' because the services are provided on account.

Step-by-step explanation:

The subject of this question is Business and it is at a High School level.

The correct answer is d) No transaction occurs. Since the question states that services are provided on account, this implies that payment has not been received yet. Therefore, no transaction occurs on March 12.

It is important to note that creating an invoice and making a payment are transactional activities, while receiving cash is the result of a transaction. In this case, no transaction occurs on that specific date.