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5. The liability created by a business when it sells coffee beans and coffee cups on credit to customers is termed a(n) A) account payable. B) account receivable. C) revenue. D) expense. 6. In the first month of operations, the total of the debit entries in accounts receivable amounted to $2,000 and the total of the credit entries in accounts receivable account amounted to $600. The account has a A) $2,000 credit balance. B) $1,400 credit balance. C) $1,900 debit balance. D) $2,000 debit balance. 7. The revenue recognition principle dictates that revenue should be recognized in the accounting records: A) when cash is received. B) when it is earned. C) in the period that income taxes are paid. D) none of the above