Consider the Following Short Case as You Respond to the Next

question 25

Multiple Choice

Consider the following short case as you respond to the next question: VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT Corporation; credit terms were 2 / 10, n / 30. VLC paid the outgoing freight charge of $10. PRT paid the invoice within the discount period.Considering all entries VLC would make in its AIS to record all the preceding transactions, how many different balance sheet accounts would be involved?

• A)Two
• B)Three
• C)Four
• D)More than four

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Definitions:

Errors of Straightness

The variation from the desired straight line in the path or surface of a mechanical part.

Diameter

The length of a straight line passing from side to side through the center of a body or figure, especially a circle or sphere.

Thickness

The dimension from one surface of an object to the opposite surface, important in determining material properties and suitability for particular applications.

Flatness Tolerance

A specification that defines the permissible amount of deviation from a perfectly flat surface.