Which of the Following Transactions Would Be Appropriately Processed in the Sales

question 13

Multiple Choice

Which of the following transactions would be appropriately processed in the sales / collection process?

• A)THT Corporation purchased merchandise on account from HRS Corporation.
• B)HRS Corporation received cash from THT Corporation for a previous sale on account.
• C)Both A and B.
• D)Neither A nor B.

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Definitions:

Goods

Physical items that are produced or purchased for sale by a business.

Deferred Expenses

Costs that have been incurred but not yet expensed in the income statement because they will benefit more than one accounting period.

Initial Cash Flow

The initial movement of money for an investment or project, often an outlay, which is considered when evaluating the potential financial returns.