Consider the Following Short Case as You Respond to the Next

question 22

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 income statement accounts would be involved?

• A)Three
• B)Four
• C)Five
• D)More than five

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Definitions:

Coronary Artery

Refers to the arteries that supply blood to the heart muscle itself.

Chemical Receptors

Specialized cells or proteins that bind to specific chemicals and trigger a response in the body or cell.

Inspiration

The process of taking air into the lungs, a critical component of respiration.

Aorta

The largest artery in the human body, originating from the left ventricle of the heart and extending down to the abdomen where it branches out.